Paraguay is experiencing a recovery in employment growth in the third quarter of the year compared to what was observed in the second quarter, with an increase in employment of around 57,000 people, according to data analysed by the Labor Observatory Directorate of the Ministry of Labor, Employment and Social Security (MTESS).
Between April and June 2024, the country had registered 2,849,766 employed people, while between July and September, this indicator rose to 2,906,475 employed people, highlighting the increase of 56,709 jobs. This increase in the employed population is largely explained by the 41,000 additional jobs generated in the private sector.
If the analysis focuses on economic activities, it can be seen that the main driver of employment in inter-quarterly terms was industry, where 36,000 new jobs were created, as well as the primary sector with more than 29,000 jobs, while there were decreases in the transport and construction sectors.
As for the unemployment rate, it fell by almost 32,000 people in the last quarter, from 195,948 between April and June 2024 to 164,000 between July and September, according to data from the Permanent Household Survey of the National Institute of Statistics (INE).
Employment growth: More workers with social security
Another revealing fact about the dynamics of formal employment in Paraguay is the increase in the number of workers in the records of the Social Security Institute (IPS).
According to social security data processed by the MTESS, between September 2023 and the same month this year, the number of contributors increased from 710,973 to 753,777, resulting in an additional 42,804 new workers and their families joining the social security system, reflecting a year-on-year growth of 6%.
This level is remarkably close to the figures observed 10 years ago, underlining a significant recovery in the formal private sector labour market. The current figure not only represents the largest increase compared to the other months of 2024, but also reflects a return to historically high levels.
A government spokesperson said: “The improvement in employment indicators and the incorporation of more workers into the formal sector are positive signs of the commitment and effort of all sectors to promote recovery and employment growth in our country.”
