Jackeline Muñoz States that Unemployment in Panama is Slowing Down and is Around 9.1%

The Minister of Labor and Workforce Development, Jackeline Muñoz, stated that Panama is experiencing a recovery in its labor market, with a greater concentration of jobs in the private sector for the first time in 13 years. She explained that unemployment is currently around 9.1% and that during the first half of the year, 22% more new contracts were signed compared to the same period last year.  During her participation in the program Open Debate, the Minister of Labor and Workforce Development, Jackeline Muñoz pictured below, stated that one of the main changes in the Panamanian labor market is that job creation is once again concentrated in the private sector and not in the State.  Muñoz highlighted that, after more than a decade, the country’s workforce is beginning to find its place again in the private productive sector.

“This is the first time we have that power in the private sector, where it should be. Not burdened by the State,” she stated.

The head of MITRADEL indicated that this behavior represents a change in the employment structure and assured that the indicators show a recovery trend. 

 

Unemployment in Panama is Around 9.1%, says Muñoz

The minister explained that the Government monitors labor market figures through the Labor Market Observatory and in coordination with the National Institute of Statistics and Census (INEC).  According to the indicators handled by the institution, the unemployment rate is around 9.1%, a figure that, according to Muñoz, reflects a slowdown in the growth of unemployment.

“We are slowing down. In this first half of the year, more than 22% of new contracts have been processed,” she noted.

The official noted that in previous years unemployment increased progressively, reaching figures such as 7.5% and 9.5%, but maintained that there is currently a trend toward stabilization.

MITRADEL Reports an Increase in Employment Contracts

Muñoz reported that during the first six months of the year there was a 22% increase in new employment contracts compared to the same period of the previous year.  In addition, she noted that the Government is working to improve the measurement of employment and expects to have more frequent quarterly reports that will allow for better projections of labor market behavior.

“Currently, we have an additional observatory, the INEC, working to gather these figures, and we hope that by the end of next year we will be able to obtain them quarterly,” she explained.

Tourism, Commerce and Logistics Lead Job Recovery

The minister explained that some economic sectors have shown better performance in job creation. Among the activities with the greatest recovery, she mentioned:

• Tourism
• Trade
• Logistics
• Construction, which is beginning to show signs of growth after the slowdown caused by the pandemic.

Muñoz pointed out that construction has not yet reached pre-pandemic levels, but affirmed that there are actions aimed at boosting this sector again.

Minister Assures Goal of 80,000 New Jobs is Achievable

The head of MITRADEL stated that the creation of 80,000 new jobs is not an impossible figure, recalling that around 63,000 jobs were created last year.  She explained that the loss of approximately 22,000 jobs in the agricultural sector, resulting from the shutdown related to banana production, affected the overall results.  She also mentioned that Panama faced a labor impact after the completion of large infrastructure projects, because some of the workforce was left without new job opportunities.