Hundreds of Thousands Lose Their Jobs in Ecuador Due to Coronavirus Pandemic

RIO DE JANEIRO, BRAZIL – The coronavirus pandemic, which has severely affected Ecuador like many other South American countries, has also had a tremendous impact on the labor market. Last week, the Minister of Labor Andrés Isch, published the latest job market figures.

According to these data, 289,000 workers have lost their jobs since the start of the coronavirus pandemic. The most affected sectors are trade (41,694 jobs lost), agriculture, livestock, and fishing (38,902), manufacturing (37,489), building (28,779), and administration (21,466).

According to Isch, by December 2019, 46.7 percent of jobs were in the informal sector. This figure is now likely to have increased significantly as a result of dismissals, the Minister believes. In addition, six percent of people with disabilities have lost their jobs in recent months, while some 6,000 people in the public sector have also been dismissed.

Last week, the Ecuadorian National Assembly discussed a bill, under which public bodies would be forbidden to dismiss employees if they are in default with the state. According to the bill’s authors, from several opposition parties, this has become increasingly frequent in recent months.

The government attributes its delay in payments to the coronavirus crisis and the resulting increased financial strains. Last week, Ecuador reached a debt restructuring agreement with its private creditors. In order to unburden the public finances and to accommodate its creditors, the government has implemented a number of austerity measures in recent months and passed appropriate legislation.

According to data from the Primicias website, 216,341 public sector employees are now earning less than before as a result of reduced working hours. This represents approximately one-third of all civil servants.

Last week in Guayaquil, employees in the healthcare sector and the Social Security Institute (IESS) protested against dismissals. According to reports on the Pichincha Comunicaciones website, 300 doctors and specialists who were hired at the start of the coronavirus pandemic during the weeks when hospitals in Guayaquil were overcrowded, but are no longer needed, will also be affected.

According to current figures from the Ministry of Health, 94,701 coronavirus infections were detected in Ecuador by Tuesday. The number of unreported cases is likely to be much higher. In March and April, Guayaquil was the country’s epicenter, leading to overcrowded hospitals and dead bodies unable to be removed, while in the capital Quito, the number of infections has now exceeded Guayaquil’s figures.

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