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Economy

Dominican economy grows, but creates informal jobs

The Dominican economy has been constantly growing in recent years, but is unable to create sufficient taxes and jobs, said the economist José Luis de Ramón in his talk entitled “Economic Perspective of the Dominican Republic.”

“We have grown, but with much informality, that is, our inability to create formal jobs, our inability to generate taxes with this growth, that is, it gives us a GDP, but it does not generate taxes and it does not generate jobs, which is a description what we should look at Also, we have grown with continuous deficits since 2004 that we had banking crises, “said the economist in the activity called by Seguros Banreservas.

It states that the problem of the Dominican Republic is informality and that the jobs that are being created are “very mediocre; They are domestic services, chiriperos, that kind of thing. We are growing, but we are taking people to look for their daily life in an informal market. ”

On the labor issue, also spoke the director of the Technological Institute of Santo Domingo (Intec), Rolando Guzman, noting that the levels of informality and low wages are the most shocking events in a growing economy like the Dominican.

“In an economy where the productivity of labor, measured in any of its forms, has increased significantly and wages in real terms are practically stagnant over the last two decades,” he said also moderator of the dialogue between employers and union representatives for the modification to the Labor Code.

Understands that what happens in the Dominican Republic, in large part, has to do with the institutional context, with labor regulations and therefore, indicates, are in this important process as “we are now, to rethink labor regulations for to achieve a market that works more efficiently, and at the same time preserves workers’ rights, this is a pending agenda. ”

Guarocuya Félix, the general manager of the National Bank of Exports (Bandex), when participating in the activity said that in the Dominican Republic the labor market is not seen as such, but as a favors market because “here a job is a favor Regardless of the level or relationships -because I deserve it- because I participate, then, the main job search agents in the Dominican Republic are those that have partisan political participation. ”

He explains that the problem of the labor market goes beyond a reform to the Labor Code.

“It must be a structural reform of the functioning of the labor market and that implies creating institutions different from the ones we have. Formal institutions totally different, but we do a lot of things, but we make them unconnected, not connected with the other. Employment policies do not exist, “he said.

Emphasizes that with the issue of unemployment the parties involved will never agree, so it suggests the Government take the measures of place and raise them. “Everyone knows that to improve employability and employability we have to eliminate unemployment and establish unemployment insurance.”

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