More people are self-employed in the Dominican Republic than those that are in formal jobs, a report in Listin Diario reveals.
Self-employed or independent workers as of December 2021 represented 38.9% (1,773,941 people) of the total employed (4,556,645), while the number of private sector employees reached only 36.7% (1,673,293). The number of employed was 74,333 more than in 2020.
According to the data handled by the Central Bank, through the Continuous National Labor Force Survey (ENCFT) in 2021 the number of people who earn their income working independently or self-employed increased by 4.4%, or about 74,333 more than those registered in 2020, a pandemic year in which many employees who lost their jobs, had to find a way to make a living. The high number of persons that hae created their own jobs is attributed to the low wages in formal jobs, lack of skills, and the lack of jobs as small businesses many times are discouraged from creating jobs given the high benefits accrued by law to formal employees.
In terms of occupational category, explains the Quarterly Labor Market Bulletin posted on the Central Bank’s website, the increase in the number of employed persons registered in 2021 with respect to the previous year, was concentrated in the self-employed group with 44. 8% (74,333) of the new jobs, followed by 17.8% (29,565) of private employees, 15.9% (26,331) of domestic services, 10.1% (16,706) of employers or active partners, 8.9% of unpaid family members and 2.6% (4,328) of government employees.
Last year, the generation of new jobs reached 165,990 people and according to the branch of economic activity, 19.9% were registered in the construction sector, 18.5% in energy and water, 8.2% in hotels, bars and restaurants, 6% in intermediaries and financial services, 4% in education and 3.5% in the commerce sector.
The data show a reduction in the number of employees with respect to 2020 in economic sectors such as agriculture and livestock (-7.1%), some 27,901 people less; in industries a -1.9% (9,003), Public Administration and Defense and Health, a -2.1% (5,463) and Social Assistance a -2.3%, for 4,234 less employed.
According to statistics, the average hourly income from work presented an inter-annual growth of 9.7%, going from RD$104.3 per hour in the fourth quarter of 2020 to RD$114.5 per hour in the same period of 2021.
In the formal sector, there is a year-on-year increase in the average hourly income of around 8.2% (equivalent to RD$10.2 per hour), reaching RD$135.36 per hour in October-December 2021.
According to Central Bank specialists, this income is explained by the occupational groups of service workers, office employees, professionals and intellectuals, mid-level technicians, and managers and administrators, which represent 67.5% of the employed population in the referred sector.
Likewise, the average hourly income of those employed in the informal sector showed an increase of 12.1% in the fourth quarter of 2021, reaching RD$98.49 per hour. In this sector, income is determined by service workers, farmers and ranchers, explains the CB in its Quarterly Bulletin.
86.2% of the new jobs generated in the economy are held jointly by people aged 15-24 years (75,321 more jobs) and 25-39 years (67,784 additional jobs). In the 40-59 and 60 and over age groups, there was an increase of 3,833 and 19,052 jobs, respectively.
From a gender perspective, in 2021, the men held 87,729 jobs, while the women were hired for 78,261 new jobs.
12.4% (75,651) of the new jobs created in 2021 corresponded to young people between 15 and 24 years of age.
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Listin Diario
28 March 2022