Unemployment insurance figures in Uruguay generate friction between the Government and the opposition

By Juan Pablo Álvarez

In the fourth month of the year, the number of people in unemployment insurance in Uruguay decreased by 10.4% concerning March, reaching 39,988 workers.

This figure is the lowest in the last six and a half years.

It also confirms the decreased number of workers in unemployment insurance registered since the beginning of 2023.

The data was very well received by the Uruguayan government, although the opposition criticized the triumphalism with which the team of President Luis Lacalle Pou referred to the figures.

TWO OPPOSING VIEWS

“Since January 2015, only in two months, there had been less than 40,000 workers. Another positive sign of the reactivation of employment”, said on Twitter the Minister of Labor and Social Security, Pablo Mieres.

In response to this statement, the congressman for the Frente Amplio, Sebastián Valdomir, replied:

“‘We – the Independent Party – are the left leg of the Coalition’, says Mieres, and then he hides from you that thousands of workers stopped being in the unemployment insurance because they lost their labor source.”

“And on top of that, he celebrates it. Nefarious.”

After this accusation, the National Director of Employment, Daniel Pérez, came out in defense of Mieres and expressed from his account:

“Far from what the congressman says, what has happened is a recovery of employment.”

“In 2022, there were 35,000 more workers with jobs than in 2019. In this government, measures were taken to support workers, and more jobs were generated”.

The former and current Minister of Labor, Eduardo Brenta, also attacked Mires, who pointed out that 63% of the people who left the regime in April did so due to dismissal.

The one in charge of coming out to the cross was Daniel Pérez, who replied:

“Between 2015-2019, 65% of the unemployment insurance was due to dismissal. In that same period, 50,000 jobs were lost.”

“The senator seems outraged that employment has recovered and more people have jobs”.

WHAT THE DATA SAY

In April 2023, 13,289 workers left unemployment insurance, 22% more than in March.

Among these, 4,904 did so by reinstatement (36.9%), and 8,385 left due to dismissal (63.1%).

On the other hand, in April 2023, 8,624 workers joined the insurance, 872 workers less than in the previous month, representing a reduction of 10%.

Of these, 5,016 (58.2%) entered due to dismissal, while 3,608 (41.8%) entered due to reduction or suspension.

This distribution is very similar to that recorded in the previous month.

Therefore, the evolution of unemployment insurance in April shows a strong reduction in the total number of workers in this situation, maintaining a similar distribution in the causes of entry.

Finally, the data analysis by sector of activity shows that the strongest reductions occurred in the agriculture, forestry, and fishing sector with 3,130 fewer workers, industry with 1,470 workers, and health with 477 fewer workers.

In turn, in the commercial sector, there was an increase of 534 workers in unemployment insurance.

With information from Bloomberg

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