Even though domestic economy keeps growing at a good pace, job creation fails to come along with this process. Although official data report the formal employment rate increased by 1.5 percent year-on-year in the first quarter of the year, it should be noted that this labour scheme is largely (74 percent) composed by state sector-related jobs. Whereas jobs in the private sector zoomed 0.46 percent year-on-year in the first quarter of the current year, public sector employment climbed 6.1 percent in the same period.
A pensioners' scheme data-based report released by the consulting firm led by economist Miguel Ángel Broda showed that 77,000 out of the 104,000 new jobs created in the first quarter are public-sector related positions. Only 26 out of 10 new jobs are part of the private sector. From a macro-economic perspective, this ratio indicates that for each percentage point of economic growth, the private formal job rate increases 0.06 percent.
If this tendency prevails, provincial tax agencies will undergo difficulties, largely because regional tax revenues fail to replicate the federal growth pace. Also, the federal public expenditure is currently hitting a record by representing 36 percent of GDP. The average percentage recorded in the last few decades was below 25 percent.
This perspective is even more discouraging for the Ministry of Labour when it comes to evaluating those sectors creating new formal private jobs. The construction sector shed 14000 jobs; the industrial sector lost 9000 jobs, while the agricultural sector felt by 6000 jobs during the same period. So the manufacturing sector, the construction industry and the agricultural-related activities lost 29000 jobs over the 27000 new positions created in the private sector.
Meanwhile, the real state sector gained 18000 new jobs, followed by health and social services sector (16000 new jobs), wholesale and retail trade sector (13000 new jobs). The private education sector added 8000 new formal jobs, followed by transport, storage and communication sector (4000 new jobs) and gastronomy industry (3000 new jobs).
Written by Jorge G. Herrera for Ambito.com
Translated by Jimena Gibert
Source: http://www.ambito.com/noticia.asp?id=534798
