The unemployment rate in Ecuador went from 3.8% in March 2015 to 5.7% in March 2016. In twelve months, 166.023 people became unemployed, which means that the total number of unemployed people went from 282.967 to 448.990.

In urban areas, the unemployment rate is even higher: it grew from 4.8% to 7.4% in a year. Furthermore, when analysed from a gender perspective, it is clear that women were most affected than men, with a 4.9% to 7.4% increase, against a rise of 3.1% to 4.4%.

The causes of this growth included the economic slowdown and the increase of dismissals by several companies and in sectors such as construction and oil. The economy is growing less and there is a lack of confidence in terms of investments.

Local experts claim that the oil crisis has unveiled the State’s inefficiency as regards managing resources during the oil boom, with an economic model mostly based on public expenditure.

It is important to highlight that, as regards the legal framework, Ecuador has implemented regulations that make the labour market more rigid. The elimination of hiring contracts alternatives may cause even more difficulties in the labour market, particularly in a context of economic slowdown.

Source: América Economía