BLOG DEBATE UNIT 1,2 AND 3

Labor policies in Colombia

The economic history of the country in the last decade has taught us that sustained economic growth is not enough to achieve substantial reductions in the unemployment rate. In fact, the latter has shown a high persistence after the crisis of 1999 (in which levels of 20% were reached), despite the economic takeoff of the following years. The new generations of Colombians may seem oblivious to an unemployment rate of 7%, although this was recorded in 1995. In good time, the Government has implemented policies that attack some of the distortions in the labor market that have caused Colombia has one of the highest unemployment rates in Latin America, according to figures from the World Bank and Cepal. On the side of labor demand, the Government has provided tax discounts to companies that generate formal employment. The recently approved tax reform reduced parafiscal taxes on payroll by 13.5%, which, according to numerous academic studies, favors the creation of new jobs and the formalization of existing ones. Likewise, the labor market has become more competitive internationally. A recent analysis indicates that for 2011 Colombia had non-wage labor costs that were 5% higher than the average for the countries belonging to the Ocde.

Additionally, the First Employment Law has granted different tax benefits to companies that link young people under 28 years of age to work, in order to combat youth unemployment that in recent years has almost doubled the national unemployment rate. As for the labor supply, the same reform guaranteed the resources of the Seine and contemplated that, between 2013 and 2015, 40% of the 1% of the income tax for Cree equity, be allocated to public universities.

My city is an agricultural area where potatoes, beans, cabbage, cauliflower, onion and other products are grown. It is also a livestock and milk producing area.

Resultado de imagen para agricultura en nariÃ±o

¿What would you change about policies labour in your city?.

improve the basic salary, also create a project so that employees can

create their own companies and generate more employment.

Describe the supply and demand labour in your country. (Describe if your city is a productive farming area or an industrial region or a touristy area, etc…)

the revaluation has us at a crossroads: the industry exports less, sells little in the domestic market, but the buyer has more products and better prices. This reduces agricultural and industrial employment, and increases it in services and commerce.

This dichotomy hurts us and arises, in part, from the error of the local supply that does not clearly understand internal and external demand, and leads us to the sophism of the need to protect the market: we import more because the market demands things that do not they are in the local offer, and we export less because we do not offer to the external demand what they are asking for.

We are producing what the market is no longer demanding. A very good example of this is the automotive industry, which for many years decided to set up plants in the country to provide domestic demand, and achieved a very interesting market; more before a change in the purchasing capacity of households and the entry of more brands to the market, assemblers have lost their comfort zone and have had to change their offer.