The quality of employment must be part of the public program

In it a specially paid job on the labor market or employment has a fundamental role in the cohesion and well-being of the country. The priority goal is to reduce unemployment rates so that the economy can achieve a balanced goal of full employment. In this regard, it is important to note that unemployment rates before the impact of the Covid-19 pandemic on the economy remained at an average of 6.0%. However, for the year 2020, the highest rate in the last 20 years (18.5%) was recorded compared to the one recorded in 2001 (14.0%).

Thanks to the recovery economics and domestic demand dynamics, Panamashowed a great ability to withstand shocks where the unemployment rate was reduced to 7.4% by 2023 according to INEC data, i.e. 11.1 points less than in 2020. However, apart from these quantitative aspects, another fundamental factor is the qualitative part of employment which is related to personal and social development (the quality of employment that is created).

When we talk about quality, we can highlight: security and stability in contractual forms, the salary the workers receive, the length of the day, the characteristics of the work they perform, family reconciliation, among others. These are the dimensions or problems that also affect the well-being of the person and their environment and are the least discussed.

In view of the above, almost 292,384 jobs were created in Panama in the last 10 years, of which 58.4% are permanent and 25.1% are permanent, on the other hand, more than 20% of the employed population work 40 or more hours with incomes lower than the minimum wage, and almost 30.0% have casual jobs. Another fundamental problem in the distortion of the creation of new jobs is the high level of informality, which exceeds 50.0%.

Another important characteristic is that a large part The jobs created in the country come from MSMEs where there is a big challenge to bring these companies into the formal sector. Besides the fact that most of them are in the tertiary sector (the most flourishing sector of our economy), this is important because in the analysis of the determinants of the quality of employment, the type of production structure is a decisive factor, since some sectors are more productive, innovate more, make better use of human capital and seek continuous improvement of their workers to a greater extent than others (affects wages).

We can do it list the forms of job insecurity, Now, it is important to emphasize that this is not exclusive to the Panamanian labor market and has been highlighted in recent years due to dysfunctional regulation and reforms with mixed results that have affected our workers.

On this way, The International Labor Organization (ILO), in its World Social and Employment Outlook 2023 report: Trends 2023, shows that the global outlook for labor markets has deteriorated significantly in recent years (quality). Where each region will continue to face various decent work gaps that are likely to worsen in response to global economic conditions and long-term challenges, particularly climate change.

It must be a relevant issue and be part of the government’s agenda and economic policy goals, where we are not only talking about creating jobs, but also creating quality, it is enough to mention Goal of sustainable development 8 where it not only points to the importance of economic growth, but also dignified work. We will hardly be able to move forward if it is not part of the discussion and if the correct policies are not promoted, as well as the joint effort of the entire society.