The untimely dismissal reaches 32%, while the loss of jobs because a company that liquidated barely reaches 5%.
The unemployment rate in Ecuador grows amid the health emergency caused by COVID-19. Economist Jonathan Báez, a member of the Institute for Economic Research at the Central University of Ecuador, found that untimely dismissal is the main cause of job losses during the pandemic months.
In his opinion, the effect of the «disastrous management of the country’s economic policy is the destruction of hundreds of thousands of jobs in these three years.»
He criticized the adjustment to the public sector, promoted by the Government as an optimization of the State, by which, there was the separation of thousands of workers from the public sector.
«The pandemic was not only not the main cause, it was the excuse for violating a series of labor rights through the application of the decrees of the Ministry of (not) Labor and later with the» Humanitarian Support Law, «said Báez .
The economist refers to the latest employment survey conducted by the National Institute of Statistics and Censuses (INEC), between May and June 2020, and which was carried out by telephone. Among its results, it is reflected that the main reason for unemployment in citizens is untimely dismissal.
He criticized that the current government did not achieve the objectives set to reduce the poverty rate, in fact, he said, it increased significantly. Báez indicated that the decrease in adequate employment to 9.5% may be underestimated by the way the information is collected.
In addition, he criticized that it is not possible to examine the precariousness in 2020 of the Ecuadorian labor market due to lack of information such as access to social security and contract stability, which are dimensions that are also taken into account, in addition to the level of income at the time to analyze this problem.
According to the survey, the main cause of unemployment, which is due to untimely dismissals, represents 32%, while the second cause was the termination of contracts with 27%.
While the liquidation of companies barely reaches 5% as a cause of unemployment. At your discretion:
«The companies did not close to a great extent and to maintain themselves they preferred to dismiss their workers with the expectation that they will be made new contracts favorable to them, but harmful to workers, as happened with the Humanitarian Law.»
Source: Institute of Economic Research of the Central University of Ecuador