Costa Rica’s Economy Grows But Not Generating Jobs

The economy grows and creates more jobs, but not enough that people need. That’s the main reason that unemployment also rose.

This is demonstrated in the first results of the Continuing Survey of Employment, which began publishing the National Institute of Statistics and Censuses (INEC).

Until now, the only unemployment data that was known was that of the National Household Survey, conducted in July 2011 and showed a figure of 7.7%.

The new survey, conducted during the entire year, said that unemployment is higher than previously thought and also has a tendency to rise.

The last measurement began to be applied in the third quarter of 2010, at which threw a 8.6% unemployment. Since then, it has had an upward trend to 10.4% in the first quarter of this year.

Comparing the first quarter of 2011 with the first of 2012, unemployment grows almost one percentage point. In terms of people, means about 38,000 more who sought employment without success.

In the same period, production increased by 6% quarterly, and in that same period the number of employed persons (with work) increased by 176,000.

The Minister of Planning Roberto Gallardo said that the result is fruit of a growing economy and the stability.

He emphasized that the strongest growth are salaries, which is generally more stable employment.

In total in the first quarter of this year there were 230,000 people made efforts to find work and could not get it.

Of this total, 89% have work experience, 67% are between 15 and 34 years, 31% had incomplete secondary, 67% live in urban areas and more than half are men.

What happened? Both INEC officials, and experts agree that what happened is that the demand for labor grew at a faster rate than supply.

Maria Elena Gonzalez, coordinator of the Statistical System of INEC said that unemployment increases because the economic recovery, provoked people were not participating in the labor force decide to seek work, the market can absorb one part, but not all.

The researcher at the University of Costa Rica, Pablo Sauma, also noted that there was an increase in the participation rate, which compares people who work or seeking employment, with respect to persons who have age to work (15 years and over) . Part of that growing population is put into unemployment and other employment, he said.

Related posts