|Behavior of the Labor Market in the Dominican Republic 2010
The Unemployment Rate dropped 0.5 percentage points from 14.9% in October to 14.4% in April 2010, which represents the creation of 130,440 new jobs in the Dominican Republic in this period.
According to the results of the National Labor Force Survey carried out in April 2010 in 9,952 homes on a national level, the creation of these new jobs was a result of fiscal policies and the reactivation the economy has undergone in the last three trimesters.
The following charts show the behavior of the labor market in the country according to the results of the National Labor Force Survey:
Extended Unemployment Rate (%) 2004-2010
The unemployment rate, in addition to the openly jobless, includes those people who were not actively seeking employment during this period but who were available to work.
Results of the National Labor Force Survey carried out in April 2010 showed that the unemployment rate of 14.4 dropped 0.5 percentage points with respect to October 2009 as a result of a reactivation registered in the Dominican economy beginning in the last trimester of this year.
Increase in the Employed Labor Force for the Period of April 2010-October 2009
This economic reactivation coincided with the creation of 130,440 new jobs in those areas that, between January and March, experienced major growth in the Gross Domestic Product (GDP).
As shown in the Manufacturing Industry graph, there was an increase of 15,783 jobs; in the area of Commerce 13,534; Agriculture, 11,990; Construction 11,886, Hotels and Restaurants gained 11,897 new jobs and another 30,025 jobs in other service areas.
Open Unemployment in Latin America in 2010
The unemployment rate is measured and published on an international level by the International Labor Organization (ILO). Using this rate, the Dominican Republic is one of the countries with the lowest open unemployment rates within Latin America in 2010, according to those countries measured and published by the ILO.
Growth of the Gross Domestic Product and Creation of Jobs 2004-2010
There is a directly proportional relationship between economic growth and the creation of jobs and vice-versa. A slower economic growth rate translates into a reduction of employment.
Throughout this period of October 2004 to April 2010, 559,235 new jobs were created, as a result of economic growth and the existing macroeconomic stability, an equivalent of 93,206 jobs on average per year. This fact has translated into an improvement in economic well-being and a noticeable growth in per capita national income.
Composition of the Dominican Labor Market October 2009 – April 2010
The International Labor Organization (ILO) defines “informal employment” as those jobs held by people who work in companies with less than five employees.
The proportional reduction of informal employment in the Dominican labor market indicates that the newly created jobs have mostly taken place in formal, as opposed to informal, companies.
Percentage of Informal Employment in Latin America and the Caribbean in 2006
The proportion of informal jobs is higher in the majority of Latin countries. Out of the 14 countries listed in the graph above which quantifies informal labor, the Dominican Republic is in the middle position with a rate of 56% of informal jobs among the total population along with Mexico, Venezuela and Brazil. The higher rates on average are seen in Honduras, Peru, Colombia and Bolivia.