Analysis of Colombia’s unemployment rates

Analysis of Colombia’s unemployment rates

Prepared for:

Alicia Arango

Colombian Minister of Labor

Prepared by:

Vanessa Lozano

Colombian Vice Minister of Labor Relations and Inspection

[November 4th, 2019

Analysis of Colombia’s unemployment rates
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Table of Contents

Executive Summary................................................................................................................ 2

Introduction ........................................................................................................................... 3

Colombia´s unemployment rates ........................................................................................... 4

Colombia’s most common reasons of unemployment .......................................................... 5

Effective ways to generate jobs ............................................................................................. 6

Conclusions and Recommendations ...................................................................................... 7

References ............................................................................................................................. 8
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Executive Summary

Colombia’s unemployment rates are too high. I’m the vice minister of labor relations and

inspection who will write an analytical report to the Colombian minister of labor. The

purpose of this report is to offer strategies to reduce the unemployment rates. I will research

unemployment rates, its most common reasons, and effective ways to generate jobs.
Analysis of Colombia’s unemployment rates
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Introduction

Colombia’s economy and productivity are not favorable enough. Therefore,

country’s develop is negatively affected as well as Colombians living conditions such as

hungry children eating from trash and child labor because of the lack of employment in

Colombia.

This report is made in order to analyze and explain briefly the factors which

negatively impact Colombia’s unemployment rates, to show statistics, and to expose

strategies which will help to minimize or even eradicate high unemployment rates in

Colombia over the next years.

In this article will be analyzed data of unemployment rates in Colombia from 1999

to 2018, the mainly reasons which generates it, and effective ways to create jobs in order to

decrease or eliminate high rates. The data of the current year will not be discussed on this

report.
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Colombia’s unemployment rates

In Colombia, unemployment is perhaps the most critical economic problem to solve

in the next few years. Even though the percentages of unemployment had been under the

10% over the last 5 years, they remain being a serious issue to analyze since it is affecting

country’s productivity and develop improvement.

.Figure 1 displays Colombia’s unemployment rates from 1998 to 2018. The

percentage began with 15%, but then it rapidly increased to 20% around the year 2000. One

year later the percentages substantially decreased, but later started to fluctuate since 2002 to

2018 ending with a 9.09%.This data suggests that unemployment rates will continue

fluctuating over the next few years.

Colombia’s most common reasons of unemployment

According to Díaz (2015) “two of the most evident features of unemployment in

Colombia are incidence and persistence over time”. Studies shown that rigidities and
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structural conditions of the labor market as the causes of these features. (Cardenas &

Bernal, 2003; Lora & Marquez, 1998). Moreover, the geographical distribution is another

feature of unemployment in Colombia. Díaz (2015) state:

An analysis of the unemployment rate in 522 [Colombian] urban areas…displays

that the unemployment’s distribution rates were characterized by a polarization

process between 1993 and 2005: if the municipal unemployment rate was either

very high or very low, relative to the National average, it tended to stay at that level,

but if the initial unemployment was close to the average it either increased or

decreased. (p.124).

In other words, this suggests that regions with favorable demographic attributes and

economies faces lower unemployment rates. Also, unemployment rate’s spatial evolution is

due to different kinds of factors; the age, gender, population’s skills and the industrial

composition of their employment.

However, is crucial to understand that employment and unemployment are

conceptions of a market economy, so if there’s not a market where people could offer

services or products, unemployment could not exist. The labor market and country’s

economic growth are connected, so if labor market continues to crumble the economic

growth of the country will be adversely affected.

Effective ways to generate jobs

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Analysis of Colombia’s unemployment rates
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Conclusions and Recommendations

As has been noted, the mainly causes of Colombia’s unemployment high rates are

incidence and persistence, and geographical distribution. This issue could be solved

implementing (introducer estrategias) to improve Colombia’s productivity, economy and

development just as Colombians live qualities and lifestyles.

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invidunt vis. Dicam laoreet sapientem eam ut. Sit tempor omnesque

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ne, justo audiam cu mel. Zril putent omittantur ius ad, vis aeterno feugiat ea,

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magna movet deserunt, mea graeco mandamus consequat ea, in unum vocent

perpetua vel.

It is crucial to step in this trouble in order to stop unemployment’s growth and it’s

adversely influence in Colombia, so then the country will grow and stand out in different

aspects, which will significantly improve Colombian’s way of living.

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References
Cardenas, M., & Bernal, R. (2003). Determinants of labor demand in Colombia: 1976-

1996 (Working Papers 10077). National Bureau of Economic Research, Inc,

November.

Díaz, A. (2015). Spacial unemployment differencials in Colombia. Revista Desarrollo y

Sociedad, 76(.), 124. doi: 10.13043/dys.76.3. Retrieved from:

https://revistas.uniandes.edu.co/doi/pdf/10.13043/dys.76.3

Feiling, T. (2017). The island that disappeared: Old Providence and the making of

the western world. London, UK: Explore Books.

Kutch, J. (2019, April). What productive conflict can offer a workplace. [Video

file]. Retrieved from: https://www.ted.com/talks/jess_kutch_what_productive_

conflict_can_offer_a_workplace

Sivan, A. (2011). New perspectives in plastic biodegradation. Current Opinion

in Biotechnology, 22(3), 422–426. doi: 10.1016/j.copbio.2011.01.013. Retrieved

from: https://reader.elsevier.com/reader/sd/pii/S0958166911000292?token=1C52D

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