Coronavirus | Why is Peru the country in Latin America most affected economically by the pandemic? | ILO

Peru will lose almost 1.5 million jobs this year in the aftermath of the coronavirus pandemic, warned this Monday the International Labor Organization (ILO).

“For 2020, a fall of about 1.5 million employed people is expected compared to the employment of 2019,” said the ILO presenting the report “Peru: impact of Covid-19 on employment and labor income.”

“A further deterioration in the quality of employment is also expected, above all, increases in informality and self-employment,” said the oUN body, which has its Latin American regional headquarters in Lima.

In 2019, the employed population in Peru amounted to 17.1 million people.

On the other hand, the ILO indicated that salaries in Lima have been reduced by 10.5% compared to 2019 due to the pandemic.

Peru’s GDP plummeted 30.2% year-on-year in the second quarter as a result of a long lockdown by the pandemic, which paralyzed almost all activities and plunged the country into recession.

“The level of real labor income in June-August 2020 is equivalent to that obtained in June-August 2011, it has fallen back by about 9 years,” warned the ILO.

But the agency’s report also revealed structural flaws. “Peru has not managed to transform its productive capacities or transform its labor market in the last 20 years,” said Philippe Vanhuynegem, director of the ILO for the Andean Countries.


According to the agency, the South American country fell 20 positions in the ranking of productive complexity between 1998 and 2018, which means that it is considerably less diversified than what would be expected for its income level.

“This scant productive diversification may help explain why, according to the most recent estimates, Peru has been, in the short term, the country most affected in the Latin American region in terms of economic growth in 2020”the report holds.

The regional body also indicated that the impact of the COVID-19 pandemic on the economy has shown that Peru has experienced a “mirage of growth.”

“It is clear that the country cannot think of getting out of this crisis by recovering the type of growth that it has had until now; that which concentrates a large part of the GDP in a few sectors and generates informality in the labor market and inequality in income and income. opportunities ”, warned the director of the ILO for the Andean Countries.

With 33 million inhabitants, Peru is third in Latin America in deaths (32,324) from the pandemic after Brazil and Mexico. It is also third in infections (808,714) behind the South American giant and Colombia.

But proportionally to its population, it is the most mourning country in the world with 100.48 deaths per 100,000 inhabitants, according to a ranking published by the Johns Hopkins University of the United States, a reference center.



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