Home » Blow to the construction sector and national economic dynamics, the reasons for the increase in unemployment in Neiva

Blow to the construction sector and national economic dynamics, the reasons for the increase in unemployment in Neiva

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Blow to the construction sector and national economic dynamics, the reasons for the increase in unemployment in Neiva

DANE released the unemployment rate for the January-March 2023 mobile quarter, revealing that important economic sectors were affected.

Neiva suffered a strong impact on the unemployment figure, according to the DANE report, the capital of Huila reached 15.1%, contrary to the significant recovery it had had after the pandemic.

Although the news is worrying, the reasons are clear. So far this year, sectors such as construction have been highly affected; In the Huilense capital, around 2,318 jobs were lost, added to professional, scientific, technical and administrative services activities in which more than 2,000 were lost.

According to DANE, the area licensed for buildings between January and February 2023, compared to 2022, decreased by 32%, therefore, since there were no new works or improvements in the construction sector, the labor market was affected, along with professional and specialized services. related to studies and designs.

On the other hand, it is important to have the context of confidence and perception of the current dynamics, since the country is going through a political, social and economic transition. Fedesarrollo with its Business Opinion Survey for March 2023, specified that the current economic perception of companies compared to the previous quarter decreased by 3.9 percentage points; the industrial confidence index decreased 0.88 percentage points compared to the month of February and the expectations of job creation in the industrial sector decreased 1.3%.

The foregoing explains that businessmen in the country currently have a not very favorable perception of the country’s economic and political situation, which is affecting the demand for employment at the national level.

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Regarding the unemployment situation in Neiva, Mayor Gorky Muñoz explained the reasons why this situation occurred and was positive. “The important thing about crises is knowing how to face them to get out of them, which is why from this Administration we will continue to implement strategies that allow us to counteract unemployment, and offer new opportunities to Neivans. An important time is coming for our municipality, as are the San Pedro festivities, in which we expect an important recovery of the economy and the strengthening of tourism, which positively impacts the hotel, gastronomic, public transport and citizen sectors. in general,” he said.

It should be noted that after the serious economic damage caused by the pandemic, Neiva was one of the cities that achieved a high recovery rate, due to the work that was carried out by the Mayor’s Office led by Muñoz, aimed at generating opportunities, work articulated with entrepreneurs and the business community, as well as the organization of large events, fairs and shows, as well as the visibility and recovery of confidence for tourism.

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