“Thanks to the incentives we have generated 138,000 jobs”
Minimum wage, recovery of employment and informality were the main labor issues that the Ministry of Labor, headed by Ángel Custodio Cabrera, had to attend to this year.
And it is that among the great consequences left by the pandemic was the loss of around five million jobs, which in turn generated the transfer of formal employees to informality and the decrease in the purchasing power of many Colombian families.
Thus, although progress has been made in terms of the recovery of jobs, among the tasks that the next president will have to assume will be to lower the unemployment rate to one digit, return to the path of 3% in inflation and continue closing gaps to improve the quality of life of Colombians.
In an interview with EL COLOMBIANO, Minister Cabrera spoke about how people's purchasing power will be protected, given the new increase in the minimum wage; how the youth employment subsidy program is going and what job announcements are coming.
Fedesarrollo and Anif stated that increases above 7.5% in the minimum wage could put the formal labor market at risk. Could this increase of 10.07% increase informality?
“To prevent us from falling into informality, the National Government has been implementing tax incentives for employment and subsidies for all new jobs. So, the Government is contributing to the creation of new jobs with the subsidy of up to 25% of a minimum wage to employers who formally hire young people between 18 and 28 years old. For people over 28 years of age, there is also a 10% subsidy for men and 15% for women.”
The promise with these subsidies was to generate 600,000 jobs, but that goal was not achieved...
“This year we ended with 138,000 new jobs thanks to this program, which we will be accompanying for the next three years. The message to employers is: create new jobs and the Government will be your ideal partner”.
How is the job recovery going?
“In terms of employment we are doing very well. In November 2019 we had 10,057,000 people affiliated with social security. In April and May 2020, in the midst of the pandemic, it dropped to 9.1 million, that is, we lost almost a million jobs. As of December this year we are already at 10.2 million people affiliated with social security”.
How is it responding to the claims of pensioners whose salary rises with inflation but not with the minimum?
“For all the people who have a pension based on the minimum, the increase will automatically be 10.07%. For the rest of pensioners, this will increase by 5.3%, which is the value of inflation. As it is a matter that is by law, then we have to review what the fiscal impact would be. On January 28 of next year we will set up a work table to review this issue, and if we have to take a bill to Congress, we will do it. But it is necessary to review the pensions of those who have less capacity to pay, who are the most affected, because there are also pensioners with 25 minimum wages.
What job announcements are coming?
“One of our priorities is to work together with different sectors to verify if, for example, all hospitals in the country are paying workers on time. We will also carry out a pilot experience for projects, through solidarity organizations, in order to begin to combat informality and leave an adequate path forward”.
What do you highlight about the consultation table this year, bearing in mind that an agreement was rarely reached?
“It is noteworthy that, for the first time, all the organizations represented in that Permanent Commission for Coordination of Salary and Labor Policies, where the workers, the unions and the National Government are, reached an agreement, something that was very positive. More than 10 or 11 years ago, no unanimous agreement had been reached. That means that with dialogue and listening to each other, the necessary agreements can be reached”.
What has happened with the labor reforms and the Employment Mission?
On January 12, 2022, the Employment Mission, whose purpose is to design policies and strategies that allow it to face the deterioration of the labor market, will deliver its report so that public opinion can know it and we will see what future awaits the country. It is one more instrument for the discussions to come. On the other hand, it must be remembered that in the midst of a pandemic, talking about labor reforms was very complex. However, the results in terms of job creation have shown that the measures taken by the National Government have worked. In the future, with what the Employment Mission gives us, we will analyze and make the decisions that are required in labor matters.”
What then are the main tasks that would remain for the next government?
“In these times everyone proposes things, but we must bear in mind that after a pandemic everything changes. This means that it is necessary to address issues that were not previously addressed, such as employment subsidies, government intervention in the labor market. We are in a time in which important decisions must be made to guarantee employment and increase actions that help reduce informality in the country”
