No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeBusinessEmployment outlook among industrial sector shows no improvement

Employment outlook among industrial sector shows no improvement

The employment and production outlook among industrial sector companies does not look very positive for the rest of this year, a survey from the Costa Rican Chamber of Industries (CICR) found.

The conclusion is part of the results of a study that the chamber presented on Tuesday.

More than half of company heads surveyed — 60 percent — said they are not planning any changes in their staff in the next eight months. Only 25.8 percent of them are considering hiring more employees; 14 percent said they will reduce their staff.

While the net balance of the expected employment behavior for this year results in an 11.7 percent increase, this is lower than the 15.3 percent recorded in 2016.

The net balance of production is 43.7 percent, which is also down from the 45.8 percent from last year’s survey.

Chamber President Enrique Egloff said at a press conference that his organization is very concerned about the downward trend. Surveyed business leaders said the country’s high electricity tariffs are the main factor affecting their companies’ competitiveness.

The costs for them of Social Security and other mandatory benefits for workers followed in second place.

Other negative factors mentioned included high fuel prices, bad road infrastructure, unfair competition from informal businesses, and high taxes. Egloff noted that excessive red tape is another factor that is seriously damaging the country’s competitiveness.

Trump effect: limited

The CICR’s survey also asked entrepreneurs about the influence on local production of the new U.S. administration and its policies.

A majority of them — 65 percent — considered that recently approved policies would not impact local production. Another 23 percent said that the effects are still uncertain and 12 percent said U.S. policies will negatively impact the local industry.

Those who said President Donald Trump’s policies will negatively affect them said they believe the main impact will be on their supply chains. They also said policy shifts could affect the destination markets for their products, and that will hurt the attraction of new investors and financing options.

The CICR conducted its survey by telephone and email of a sample of 121 companies between January 30 and April 7.

Results have a margin of error of 3 percent and a confidence level of 95 percent, the chamber reported.

Trending Now

Costa Rica Celebrates 201st Annexation Anniversary With New Nicoya Park

Nearly 200 people joined the Municipality of Nicoya this Sunday to inaugurate a new park at the Annexation Monument, an initiative that blends recreation,...

Keylor Navas Joins Pumas UNAM in Major Liga MX Transfer

Keylor Navas has agreed to become the new goalkeeper for Pumas UNAM, marking one of the biggest signings in recent Liga MX history. The...

Cosby Show Star Malcolm-Jamal Warner Dies in Costa Rica Drowning Accident

Malcolm-Jamal Warner passed away at 54 from an accidental drowning. He gained fame as Theo Huxtable on "The Cosby Show," playing the son in...

Costa Rica Launches Traceability System to Tackle Illegal Logging

Costa Rica is advancing with the creation of a National Forest Traceability System, a key tool to guarantee the legality and sustainability of timber...

Why I Choose Real Life in Costa Rica Over the AI Hype

When it comes to AI, call me OG. Old school. I sometimes wish I could go back to a time before it existed. Artificial...

Panama Union Leader Saúl Méndez Goes into Exile in Bolivia

The leader of Panama’s main union, Saúl Méndez, accused of fraud and money laundering, left for exile in Bolivia this Saturday. He had taken...
L. Arias
L. Arias
Reporter | The Tico Times |
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica