Updated 05:56 AM EDT, Thu, Apr 22, 2021

Ecuador Achieves 4.8 Unemployment Rate: How the Latin American Country Created Employment Opportunities

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Recent statistics reveal that the rate of unemployment in Ecuador has dipped to a promising 4.8 percent.

TelesurTV reported that the National Survey of Employment and Unemployment (ENEMDU) released the figures revealing that the country has the lowest unemployment in Latin America. This is followed by Peru, which has 5.8 percent.

The country's Minister of Labor Leonardo Berrezueta said that this is positive news, despite the economic issues that the region is facing.

"It's a very encouraging figure in light of the fall in the price of oil, the appreciation of the (U.S.) dollar and the currency devaluation in neighboring countries. Despite all of that, we have protected employment," Berrezueta noted.

The TelesurTV report underscored that the oil-exporting nation was hurt by the drop in the oil prices last year.

Ecuador is also unable to devalue its currency to make it competitive like other South American countries.

But ENEMDU figures prove that the country was able to deal with all these struggles, and still improved its employment efforts.

According to Andes, the survey of the country covered more than 30,000 houses in both urban and rural locations.

It also revealed that there were notable increases in the employment rate in areas like Ambato, Cuenca, Quito and Guayaquil.

All these developments were attributed to the incentives that the country offered its investors. These entrepreneurs have been encouraged to maintain their businesses in Ecuador, and provide more jobs to its people.

Andes also explained that if an employer increases the number of workers (with a six months minimum contract), there is a possibility of having a 100 percent deductible Social Security contribution.

Those who also add more workers, despite losses, can also "have access to the exoneration of the anticipated payment to the income tax."

In addition, contractual methods in various sectors of the government have also been implemented for flexibility options, but maintained the labor rights of workers.

These policies in government were made possible through the nine-year leadership of economist and President Rafael Correa, said TelesurTV.

Financial Times tagged Correa as a pragmatic leader who is responsible for using the country's oil wealth to create infrastructure projects and solve poverty in Ecuador.

Last year, a separate Andes report noted that Ecuador listed a lower unemployment rate of 3.84 percent.

It noted that the sectors that provide more jobs to the people are fishing, cattle raising, agriculture, hunting and forestry.

The areas with the lowest unemployment rates last year were Cuenca, Machala and Guayaquil.

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