Unemployment insurance workers increased to 80 thousand

In March there were 72.6 thousand workers in unemployment insurance, in April they became 76 thousand and in May they amounted to 80 thousand. “This increase is explained by the impact of the restriction measures due to the evolution of the pandemic in mid-March,” explained in a statement released by the Ministry of Labor and Social Security (MTSS).

“In this sense, it is similar to what happened in December 2020 when the trend to decrease workers in unemployment insurance was halted in line with the measures taken at that time,” he adds.

According to the breakdown of the figure, 52,342 people correspond to the total unemployment insurance and 28,019 to the partial or flexible unemployment insurance scheme. On the other hand, the number of people in total unemployment insurance decreased by 655 people from April to May, while the number of people in partial unemployment insurance increased by 5,043 workers.

“The opposite situation occurs to the month of April, when all the growth was concentrated in total unemployment insurance. A probable hypothesis is that this growth is due, at least in part, to the application of flexible unemployment insurance ”, the statement emphasized.

As for the workers who were released from unemployment insurance in May, 64.8 percent were reinstated, a total of 9,770 people, and 35.2 percent were laid off, representing 5,312 people.

“In other words, the proportion of workers who entered unemployment insurance in May due to suspension or reduction increased significantly. At the same time, the proportion of workers who entered the unemployment insurance due to dismissal is one in five ”, it is deduced.

Therefore, the situation is the opposite to that of April, when all growth was concentrated in total unemployment insurance. This trend is explained by the portfolio authorities as a growth that is due to the application of flexible unemployment insurance, a measure that “a year ago did not exist.”

The statement remarks that the information is “consistent” and that they respond to the activity restrictions adopted in March. These measures translate into an increase in partial unemployment in April and in the partial or flexible unemployment insurance in May.

In both cases, the increase in unemployment insurance workers in the last two months is completely concentrated in the sectors of activity that were subject to activity restrictions in March: accommodation and food services, commerce in general -free shops- and teaching.

The increase from April to May in total unemployment insurance, if the sum of the three sectors mentioned is considered, is 4,366 people. In the case of partial or flexible insurance, this increase, adding the three sectors, is 3,903 workers.

The Minister of Labor and Social Security, Pablo Mieres, assured in an interview with Informal Breakfasts this Wednesday, that when the restrictions are lifted as a result of the health emergency “there will surely be a recovery from this deterioration.”

In this regard, he explained that each restriction measure taken has a social cost. “It also shows that the State has tools that help people who need social assistance,” he said in reference to flexible unemployment insurance.

In addition, he explained that until the end of 2020 the State spent 450 million dollars on unemployment insurance. “There is an effort and that effort for more than the subsidy, all that when you look at it in terms of the person’s income is an equal impact, the subsidy does not solve the person, but it does help him to pass. There is a social cost anyway ”, he pointed out.

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