510,000 formal jobs will be lost in Ecuador until July 2020, according to new projections

This represents approximately 21% of formal employment in the country

A study of the financial area of ​​the University of the Americas (UDLA) estimated that, if the economic situation due to the coronavirus in Ecuador remains the same, around 510,000 formal jobs would be lost in the country until July of this year. These projections were made with reference to the balance sheets and the number of employees of 28,000 companies.

The study highlights that, due to the closure of companies, 36,100 jobs were lost in March, 77,200 in April and 167,000 could be lost in May. Similarly, it is projected that in the next three months 4,372 will be reported fewer jobs every day.

The president of the Quito Chamber of Commerce, Patricio Alarcón, also warned that in Ecuador 150,000 fewer affiliations have already been registered with the Ecuadorian Social Security Institute (IESS). 45% (65,500 people) reportedly reported in Quito.

Hoy tenemos casi 150.000 afiliaciones menos en el IESS (45% Quito – 65.500 personas), y las empresas no tienen ayuda para soportar aportes, al contrario quieren incrementar impuestos.

¿Entendemos la magnitud y consecuencias del problema? @LoroHomero @cesarlitardo

— Patricio Alarcon (@PatricioAlarco2) May 13, 2020

The study methodology consisted of calculating the time that each of the companies in the sample could survive, without breaking, assuming the reduced sales speed observed during the crisis.

Source: UDLA – El Universo