Although there is no doubt that this year will close with a rate of unemployment at single-digit levels – in November it already dropped to 9.5 percent – next year it is very likely that this rate will spike again.
(Also read: The unemployment rate in Colombia in November was 9.5%)
The slowdown in the economy (global and local), the 16 percent adjustment in the minimum wage, the effects of the tax reform, the return of the collection of impoconsumo in establishments that sell food and beverages, as well as the adjustment of prices and costs each year , are among the reasons that endanger the decline shown by unemployment in Colombia this 2022.
(You may also be interested: Airlines would be willing to lay off staff to lower costs in 2023)
Only this week, the Dian reminded businesses that are exclusively dedicated to spending food and beverages of the obligation to re-collect the national consumption tax as of January 1, 2023, to which Guillermo Gómez Paris, spokesperson for the restaurateurs’ union (codres), said that this will impact their sales.
“There is no way to avoid the negative impacts,” emphasized the leader, noting that it will be “inevitable to raise prices,” while the effects will also be seen on the side of formal employment, to the extent that “it will not be possible to hire more personal”.
Something similar is expected in the air sector with an increase from 5 to 19 percent in the cost of tickets.
According to Guillermo Reyes, Minister of Transportation, Given this measure, the airlines would be contemplating reducing staff, an alternative that would be made known to them in a meeting held with businessmen in this industry.
“The economic conditions that are coming represent a significant challenge for companies and job creation. Although the Dane indicators show that unemployment is in single digits for the second consecutive month, the increase in costs for companies and the increase in New Year prices will have an impact on consumption,” he said. María Claudia Lacouture, President of the Colombian American Chamber of Commerce (AmCham).
He also said that the Government and the business sector must continue monitoring so that the economy remains positive and with the creation of more formal jobs that generate income for the entire population. “The tone of the reforms that are coming will be decisive in this objective.”
Referring to the figures revealed yesterday by Dane, Luis Fernando Mejía, director of the Center for Economic Studies FedesarrolloHe said that the seasonally adjusted unemployment rate, which allows comparisons with the previous month, went from 10.5 percent in October to 10.8 percent in November, which may indicate the start of the slowdown in economic growth, which it would limit the capacity to generate employment, especially next year.