Saturday 27 February 2021

Informal employment rises faster from the crisis

With the pandemic, this sector, which includes salaried workers without insurance, among other types of workers, was the one that fell the most; but their recovery is also more noticeable, while in the formal the rebound has been slower.

QCOSTARICA – Informal employment was the hardest hit by the economic crisis caused by the new coronavirus pandemic in Costa Rica, and is now the one that is rising the fastest.

Johana Mendoza was left without a job at the hotel where she worked and now she is trying to get ahead by offering massages to the few tourists that come to Tamarindo. Informal employment has recovered but is not reaching pre-pandemic levels. Photo: Rafael Pacheco, taken on November 3. 

This is seen in the results of the Continuous Employment Survey (Encuesta Continua de Empleo – ECE) for the last quarter of 2020 published on Thursday, February 4, by the National Institute of Statistics and Censuses (Instituto Nacional de Estadística y Censos – INEC).

- Advertisement -

According to the results of the study, the number of informal workers fell sharply by about 346,000 jobs between the first and second quarters of 2020. By the end of the year (in the last quarter of 2020), almost 188,000 had recovered.

According to the definition used by the INEC, informal employment comprises salaried people who are not registered with social security through their employers; unpaid helpers, and self-employed workers and employers who have unincorporated companies (they are not registered in the National Property Registry and do not keep formal accounts).

For its part, formal employment fell between the first and second quarters of 2020 by about 117,000 jobs and only 20,000 have recovered.

In informal conditions, there are just under half of the country’s workers. In 2019, the average informality for the four quarters was 46%. In 2020, in the second quarter, which was the worst period of the crisis for the labor market, it fell to about 40% and at the end of the year, it rose again to 45%.

- Advertisement -

The gradual recovery of jobs, both informal and formal, in Costa Rica has helped to alleviate some of the unemployment caused by the crisis.

Unemployment doubled with the pandemic to a peak of 24% in the quarter that ended in June and has had a slight downward trend since. In the last quarter of 2020 it was 20%.

María Luz Sanarrusia, in charge of the Survey, indicated that by branches of activity there has been a recovery in domestic jobs, transportation, and commerce, where there are higher percentages of informality.



- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Unemployment in Costa Rica closed 2020 at 20%

QCOSTARICA - The National Institute of Statistics and Censuses (INEC) reported...

About 29,000 small businesses disappeared in one year

QCOSTARICA - About 29,000 microenterprises disappeared in 2019, according to the...


Japan creates Ministry of Loneliness

Japan is beefing up measures against loneliness, taking a first major step toward comprehensively tackling a pervasive problem in the nation that has again...

In a week, Costa Rica off and on the list of risk countries in Spain for covid-19

QCOSTARICA - Spain had excluded Costa Rica from the list of risk countries to enter by air for presenting a negative covid-19 test (RT-PCR,...

Costa Rica confirms presence of coronavirus variants emerged in UK and South Africa

QCOSTARICA - Costa Rica already reports variants of SARS-CoV-2, the virus that causes covid-19 that emerged in the United Kingdom and South Africa and...

Costa Rica signs an agreement to become a full member of CAF

(BNamericas) - In order to strengthen the well-being of the population and the sustainable development of the country, Costa Rica has been incorporated a...

Contagion rate rises 13.3% in one week

QCOSTARICA - Though the number of new cases daily of covid-19 has been "stable" this past week, the contagion or R rate rose to...

50 years ago the San Carlos River was crossed by ferry and these were the rates

TODAY COSTA RICA - Before the Office of the Comptroller General (CGR), the rate agreed by the Municipality of the canton of San Carlos...

AyA’s board member reacts: GM says that everything was resolved

QCOSTARICA - A member of the board of directors of the Instituto Costarricense de Acueductos y Alcantarillados (AyA) - water utility - Yolanda Acuña...

Amazon announces the opening of a new cloud services office in Costa Rica

QCOSTARICA - Amazon Web Services, Inc. (AWS), a division of the Amazon company, announced the opening of its first Central American office in Costa...

Costa Rica, Cuba to cooperate in television and radio broadcasting

HQ (Prensa Latina) Costa Rica and Cuba on Friday signed a framework cooperation agreement between the National System of Radio and Television S.A. (SINART)...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.