According to the National Institute of Statistic and Census (INEC), 4,475,400 people of the working population are underemployed, have a non-paid job or are part of another form of non-full employment. In addition, 366,000 people are unemployed.

“There are over 4 million Ecuadorians who, on one way or another, do not have a decent job, are unemployment, or underemployed; our concern is about jobs”, said Minister of Labour, Raúl Ledesma.

Clearly, tackling underemployment is one of the biggest challenges the government faces.

Several analysts state that unemployment is way larger because only those who are unemployed look for any activity that is within the area of underemployment in order to survive.

Ledesma announced that a new Labour Code is being developed in order to generate more and better employment.

“It has to do with the adaptability of new contracts for specific areas of smaller percentages and better salaries for workers”, he said.

The reforms of the Code should not only include new types of contracts, but also reinstate rights that were eliminated by the previous administration. Ecuador has the chance of modernizing its labor market betting on diversity of contracts, more dynamism and inclusion.

The minister said that in one and a half month, the first draft of the new Code of Labour will be handed to President Lenin Moreno.