DEFINITION OF EMPLOYMENT, UNEMPLOYMENT AND

UNDEREMPLOYMENT
EMPLOYMENT
Employment is the completion of a series of tasks in exchange for
monetary compensation called salary. In today's society, workers trade their
abilities in the so-called labor market, which is regulated by the powers of the state
to avoid conflicts. The company would be the place where the powers of the
different workers interact with the purpose of receiving a profit.

•Formal employment
Formal employment is that provided by the State or private initiative

•Informal employment
It groups together non-professional independent workers, micro-entrepreneurs and
domestic help.

•Self-employment
It is the activity of u a person who works for himself directly in economic units
(a trade, a trade or a business) that he owns, who directs, manages them and who
obtains income from them.

UNEMPLOYMENT
Unemployment is the involuntary idleness of a person who wants to find work. A
situation in which people find themselves who, having the age, ability and desire to
work, cannot get a job and are subjected to a situation of forced unemployment.
The appearance of unemployment means that social work is the object of a
commercial exchange, that is, that the worker sells his labor power to an employer.
It is the fact of not finding a buyer for your workforce that defines the status of
unemployed.
The history of unemployment is therefore that of the extension of the wage
earner, that is, of the extension of the capitalist production method.

Types of Unemployment
- Structural Unemployment
Structural unemployment technically corresponds to a mismatch between
supply and demand for labor. This kind of unemployment is more harmful than
seasonal unemployment and frictional unemployment. In this type of
unemployment, the supply characteristic is usually different from the demand
characteristic, which makes it probable that a percentage of the population will not
be able to find employment on a sustained basis.
The main characteristics that warn of structural unemployment are:
 Sustained mismatch between the quality and characteristics of supply and
demand.
 Misadaptation of all economic actors with respect to the external economy
and inability of the internal market to alleviate this difference.
-Cyclic Unemployment
This type of unemployment occurs only for one cycle, in this case, its
consequences can lead countries with weak institutions to violence and finally civil
disobedience. In developed countries, the situation can cause changes in state
policies until definitively the adoption of a different economic system as a penalty
for institutional weakening. A case of cyclical unemployment has been the world
crisis of 1929.
For economists like Arthur Cecil Pigou, unemployment practically occurred
only for reasons of the economic cycle, and during the crisis of the 1930s he
maintained that and had to face a harsh opponent of his neoclassical economic
vision from the British economist from the University of Cambridge. John Maynard
Keynes.
-Frictional Unemployment
Frictional unemployment (due to rotation and search) and unemployment due
to job mismatch (due to discrepancies between the characteristics of jobs and
workers) appear even when the number of jobs coincides with the number of
people willing to work. work.
It refers to workers who go from one job to another to improve themselves.
Their unemployment is temporary and does not represent an economic problem.
Frictional unemployment is relatively constant.
-Seasonal Unemployment
On the one hand, seasonal unemployment is unemployment that varies with
the seasons of the year due to seasonal fluctuations in the supply or demand of
labor. We speak of seasonal unemployment, on the other hand, to refer to that
which occurs due to the fluctuating demand that exists in certain activities, such as
agriculture, for example.
-Long Term Unemployment
A person registered as a job seeker, uninterruptedly, for a period of more
than one year, is considered long-term unemployed.
Long-term unemployment has a negative effect on the capacity of the labor
market, in the classic model, to automatically restore full employment. In long-term
unemployment, the market is distorted since this type of unemployed do not
compete with employees, because companies do not consider them "eligible", to
the extent that they understand that they are not capable of replacing those who
are performing. the same tasks and therefore do not put downward pressure on
salaries and do not redirect the labor market towards a new equilibrium.

UNDEREMPLOYMENT

In the International Standard Classification of Occupations the term

"underemployment" is used to indicate inadequate employment, in relation to
specific standards or alternative employment in accordance with their
qualifications, for example, insufficient workload ("visible underemployment") or
imperfect distribution of labor resources and underutilization of a person's ability or
skills ("invisible underemployment").

Types of Underemployment
- Visible or Hourly Underemployment
According to the international definition, there are three criteria to identify
those employed in a situation of Visible Underemployment:
· Working less than the duration of a normal work day.
· Being in this situation involuntarily.
· Look for additional work or be available to work more hours.
Based on the aforementioned criteria, we can refer to employed people who
usually work less than a total of 35 hours per week in their main occupation for
involuntary reasons, who wish to work more hours per week and are available to
do so, but do not do so because they do not get more paid work or more
independent work.
- Invisible or Income Underemployment
According to international standards, to distinguish invisible
underemployment, low income levels, insufficient use of skills and low productivity
are considered.
According to data from the 2011 Multipurpose Household Survey, the country's
total underemployment reached 35.3% in 2011.

Digestyc explains that underemployment refers to those employed people who

have difficulty working a certain number of hours per week, as well as obtaining a
remuneration that reaches, at least, the minimum wage.

People who work less than the 40 hours a week required by law, involuntarily, are
classified as visible underemployment. Invisible underemployment refers to those
Salvadorans who work 40 hours a week, or more, but earn less than the current
minimum wage.

Thus, the underemployment rate, which is only measured for urban areas, reached
35.3% in 2011. Of this percentage, 32.2% are invisible underemployed and 3.1%
are visible underemployed.

It is estimated that there are 613,474 underemployed Salvadorans in the country.

Of these, 269,407 live in poverty conditions: 67,487 in extreme poverty and
201,920 in relative poverty. Underemployment is greater in men (315,685) than in
women (297,789), according to data from Digestyc.

Comparisons

In the last decade, 2006 was the year in which the highest underemployment rate
was reported, with 36.9%. In 2007 this was reduced to 28.4% and in 2008 it rose
again to 32.1%.

Between 2009 and 2010 a reduction was reported, when it reached 30.6 and
28.9%, respectively. However, in 2011, the EHPM shows a jump to the
aforementioned 35.3%.

Invisible underemployment went from 32.3% in 2006 to 23.8% in 2009. Between

2010 and 2011, this indicator jumped from 22.6% to 32.2%.

The unemployment rate, according to Digestyc data, shows a reduction. In 2011,

the national total stood at 6.6%, after reaching 7.1% in 2010.

The highest level since 2000 was reached in 2009, when it reached 7.3%.

Unemployment in urban areas also reached 6.6% in 2011, after being at 6.8% the
previous year. In urban areas it was also 6.6%, compared to 7.6% in 2010.
Women with more jobs?

• The results of the 2011 EHPM seem to indicate that women have fewer problems
finding employment in the country.

Urban unemployment among women is 4.1%, according to Digestyc, compared to

8.7% for men.

In rural areas, female unemployment is 5%; while men reach a rate of 7.5%.

32.2% 32.2% earn less than the minimum, even if they work 40 hours a week or
more.

3.1% 3.1% work, involuntarily, less than 40 hours per week.

Poverty, basic services and literacy, according to survey results

40.6% of Salvadoran households live in poverty. 35.4% of households located in

urban areas are within this indicator, as well as 50.2% in rural areas. Households
in extreme poverty are 12%, in urban areas they are 8.9% and in rural areas,
18.43%. In relative poverty they are 28.3%. 26.5% in urban areas and 31.7% in
rural areas.

The update of total poverty, until the first half of 2012, shows a reduction of almost
seven percentage points in rural poverty, when compared to the same period in
2011. The indicator went from 49.7% to 42.8%, according to government data. The
country's total fell by more than three percentage points in the same period, and
that of urban households fell more than four points.

Regarding the coverage of basic services, in 2011, of every 100 homes, 81.6 said
they had electricity service installed. In urban areas, this indicator reaches 89.2
and in rural areas, 67.2. On the other hand, 96.3 homes out of every 100 have a
health service. In urban areas it reaches 99.4 and in rural areas, 90.6.

Regarding literacy, Digestyc points out that of every 100 people over 10 years old,
12.8 do not know how to read and write. In rural areas, this indicator rises to 20.4,
and in urban areas it is 8.2. The update until the first half of 2012 indicates that the
country's total is at 11.7, the rural at 19.8 and the urban at 7.4.

Underemployed Salvadorans, that is, those who work less than 40 hours a week or
earn less than the minimum wage; They increased 12% between 2008 and 2012,
according to official figures cited by the Chamber of Commerce and Industry of El
Salvador (CCIES), which also warned of an increase in people working in the
informal sector.

The union yesterday evaluated the performance of the outgoing government and
concluded that the economic area and citizen security closed the 2009-2014 five-
year period with pending tasks.

This poor performance of the economy, caused, he stated, by low private

investment, impacted the lives of Salvadorans. Thus, citing the state Survey of
Multiple Purpose Households (EHPM), the number of underemployed went from
495,954 in 2008, to 555,792 in 2012; that is, 59,838 (12.03%) more.

The Chamber also reported an increase in the number of Salvadorans working in

the informal sector of the economy. According to the EHPM, 825,673 informal
workers were counted in 2008, a figure that rose to 888,673 in 2012, which implies
a growth of 7.5% (62,552 more).

September 21, 2013. Underemployment is reflected in the growing number of

informal sales. /DEM
In the Historic Center of San Salvador, informal commerce has grown in recent
years and it is estimated that more than 25,000 street vendors have to resort to
that lifestyle to survive. This method of subsistence worsened in 2009 due to the
economic crisis, according to leaders of this sector who cannot find permanent
jobs, have a low level of schooling and their economic income “on the street” is
higher than a salary from a private company. .
The 2012 Multipurpose Household Survey (EHPM) revealed that 165,439 people
nationwide were unemployed. This represents an unemployment rate of 6.1%
nationwide.
The departments with the highest unemployment rates were: Cabañas, San
Salvador, San Vicente, Morazán and La Unión. The report determined that the
Working Age Population (PET) is defined as 16 years of age and for 2012 it was
found that the PET amounted to 4 million 308 thousand 637 people.
According to the report, from 2011 to 2012, the unemployment rate in the country
went from 6.6% to 6.1%, however, the lack of opportunities continues to affect a
good group of Salvadorans.
In El Salvador, the minimum monthly wage is $224.10 for commerce and service
workers, $219.30 for industry workers and $187.50 for the textile and clothing
industry. This last sector (maquila) earns $6.25 per working day, in a country
where the Basic Food Basket (CBA) per urban capita in 2012 was $46.83 monthly,
according to the EHPM.

Unemployed youth
The “I understand child labor” program revealed in June of this year that
unemployment affects almost 9% of young people between 15 and 29 years old in
the labor market. The situation is complicated when young people who have jobs
do not earn enough to overcome poverty.
“The quality of employment is also a challenge for Salvadoran youth. "Very few
enjoy jobs with written contracts and some security measures," part of the
document quotes. He points out that young people with more school education
face greater difficulties in obtaining employment.
In July 2012, the Legislative Assembly approved the My First Job Law, with the
objective of facilitating job opportunities for boys. However, the president of the
Labor Commission of the Legislative Body, David Reyes, recognizes that the
regulations have not produced results. He assured that only one job has been
created under this law, citing the Ministry of Labor.
But Nelson Quintanilla, FMLN deputy and member of the Labor Commission,
believes that the government created the conditions to create new jobs. In his
opinion, it has been the businessmen who have not provided more opportunities
for political intentions. In the accountability report of the Salvadoran Social Security
Institute (ISSS), until May of this year, coverage grew from 1.4 million to 1.6 million.
“Evidently this speaks of the employment recovery that the country has
experienced,” the report cites.

$187.50 salary This is the minimum monthly income for the textile and clothing
sector.
6.1% unemployment This is the rate that exists in the country, according to the
Multiple Household survey.
5 departments These are the departments where there is the greatest number of
unemployment.
Employment and Unemployment Statistics
Underemployment statistics
Faced with an economy characterized by weak growth, lagging investment
attraction and poor job creation, university degrees and master's degrees are no
longer the key that opens opportunities in the labor market, and now professionals
more frequently swell the ranks. unemployment rate, underemployment and
informality.

Official figures indicate that almost seven out of every 100 Salvadorans are
unemployed; while 35 are underemployed, that is, they involuntarily work less than
40 hours a week or work the same amount, or even longer, but receive a wage
below the minimum wage.

On the other hand, according to the 2011 Household and Multiple Purpose Survey,
49.3% of the Economically Active Population (EAP) is employed in the informal
sector, under precarious conditions and without benefits.

Although the phenomena affect Salvadorans in poverty in a greater proportion,

according to the 2011 EHPM, those with middle incomes with higher education
also resent the lack of opportunities.

Elizabeth Argueta, 34, and Raquel López, 26, portray the path of disappointment of
thousands of graduates. The first is a doctor who works in a collateral credit
agency; The second is a public relations specialist who makes a living teaching
music classes. More than eight and five years of career changed for a job they
never dreamed of.