CROSS-CULTURAL IN BUSINESS

DEMOGRAPHIC TRENDS IN PERU

AND THEIR IMPLICATIONS FOR
BUSINESS
 PERU: DEMOGRAPHIC TRENDS
How many people live in Peru? 42nd largest country in
the world

32,864,733 4th largest country in

South America
1. The total population will continue growing, although at lower
rates than in the past decades

★ Until exceed 40 million by the

year 2050.
★ More housing will be needed,
★ more health services of greater
complexity,
★ more and better collective
transport,
★ more and better jobs,
★ As well as expanding protection
services for the elderly.
2. Significant changes in the composition by age are projected,
especially the aging of the population

Since

The growth rate

of the population Younger groups
aged 60 and begin to show
over exceeds negative growth
that of the other rates.
age groups
3. Decrease in child population

★ For the first time in more than 100 years, the

child population will be lower in absolute and
relative terms.
★ This trend has important implications for
maternal and child health policies,
★ and initial and basic education,
★ since it makes possible that there are more
resources per capita.
 4. The adolescent and young population (15-29 years) have
increased by about 106 thousand people in the period 2015-2020

★ The immediate challenge is to improve the

relevance of higher education and policies,
★ as well as programs to promote quality
employment to take advantage of the
demographic bonus.
★ Then the young population will decrease as a
result of aging due to the reduction in fertility,
which began in the 1970s.
★ For the period under consideration, there is a net
decrease of 481 thousand young people between
2015 and 2050.
5. The young adult population (30-44 years old) and the adult
population (45-59 years old), especially the latter, will have the
highest absolute growth

★ It is key for the development of the

country that this population has
adequate conditions of formal
employment and life
★ to be able to sustain the imminent
aging process that we will experience
by 2050.
 6. The most notable change, especially in the long term, will
continue to be the rapid aging of the population

★ Its relative weight will grow from less

than 10% to almost 22% of the total
population.
★ Facing this enormous challenge means
starting today to improve preventive
health, develop and expand non-
contributory and semi-contributory
pension systems,
★ and formalize employment to have the
resources for the future pension system,
starting with those who are young today.
Social classes in Peru
In the Peruvian case, the socioeconomic levels are distributed as follows:

Source: APEIM - Estructura Socio-económica del

Perú
Elaboration: Own
Social classes in Peru
As can be seen in the graph, the main concentration of people is in socioeconomic level E, because there
is a large rural population in the provinces of Peru. However, when referring to Lima, most people are in a
socioeconomic level C, which is known as middle class.

Source: APEIM - Estructura Socio-económica del Perú

Elaboration: Own
 Social classes in Peru
The Peruvian middle class is one of the levels that continues to rise. The
Peruvian middle class is young. The majority of people in this level are
between 18 and 55 years old, which indicates that they are of working age.

The main characteristics of the Peruvian middle class are the following:

- Income: Your income ranges between S /. 2,000 and S /. 3,000

monthly.
- House or Apartment: 51% have their own home.
- Education: 61% bet on pursuing higher education. While 39% only
finish high school.
- Business: 18% have their own business.
- Goods: 14% of the population in this level has their own vehicles.
Homes with some older adult member

According to the area of residence, in

Metropolitan Lima the proportion of households
with some adult member higher reaches 44.8%.
Meanwhile, in rural areas, 42.8% and in the rest
urban, 38.7% of households have a person from
this group age.
Access to social program pension 65

In the fourth quarter of 2018, 19.2% of the heads

of household of the older adult population
benefited from the Social program Pension 65.
Compared to the same quarter of 2017, the
proportion of beneficiary heads decreased by 2.6
percentage points. According to the area of
residence, heads of household in rural areas
benefited more proportion (44.0%) than heads of
households of the urban rest (14.7%).
Affiliation to some medical insurance

Of the total population adult over 60 and more

years of age, 81.7% have some health insurance,
be public or private. Highlights Membership
coverage some health insurance of the residents
in the rural area with 86.6%, being located later
Metropolitan Lima and the rest
urban with 80.4% and 80.1%, respectively.
Size of the company

Out of every 100 elderly workers in the urban

area of the country, 81 are working in
establishments from 1 to 10 workers, 15 in
companies of 51 and more workers and 4 in
companies of 11 to 50 workers. Respect to the
same quarter of the previous year, the EAP
occupied in companies of 51 to more workers and
of 1 to 10 workers it increased by 0.4 and 0.3
percentage points, respectively.
Branches of activity

Of every 100 older adults employed in the urban

area of the country, 27 work in the branch of
Commerce, 17 in Agriculture / Fishing / Mining,
11 in Manufacturing, 8 in Transportation and
Communications and in Housing and Services
Food, 5 in Construction and Teaching, among the
main ones. 18.7% are dedicated to Other Services.
Respect in the same quarter of 2017, workers
dedicated to Trade, Construction and
Transportation and Communications
they increased by 2.9, 2.6 and 2.1 percentage
points, respectively.
5 challenges facing education in Peru
Reduce illiteracy
● The illiteracy rate in Peru is 5.9%.
● Apurímac, Huancavelica, Huánuco and Ayacucho with interest rates between
12% and 15%, exceeding the national average.
● Minedu reported that it develops literacy programs in:
○ VRAEM
○ Amazonas
○ Cajamarca
○ Loreto
○ Piura
○ Tumbes
○ Villa El Salvador
○ Ate
○ San Juan de Lurigancho
○ Ventanilla
Investment in education

● Peru is the country that invests less in education in South America, taking into account the
percentage of GDP.
● Only 3.7% of GDP is allocated to educational activities, so, the average budget of a regular school
per student is 459 soles.
● This year, the Education sector will increase by 30% the investment destined for educational
infrastructure.
Levels of reading comprehension and
mathematics

● In the latest results of the PISA test (2015), Peruvian students improved in science (63),
mathematics (61) and reading comprehension (62) compared to 2012, Peru held low positions in a
total of 69 countries studied.
● One of the goals is that the levels of reading comprehension and mathematics of students in the
second grade of primary school reach 2021 to 51% and 44%, respectively.
Access to higher education

● Only 3 out of 10 young people access higher education in Peru.

● 1.4 million young people between 15 and 29 years old do not study or work.
● The fact that they do not study hinders access to stable and formal work, which is reflected in the
statistics: 1.4 million young people between 15 and 29 years old do not study or work.
University licensing
● Of the 143 universities that exist in the country, 54 have a license, that is, more than half of them
do not carry out this process.
● This year, about 60 universities and 30 technological institutes have graduated, and for the
Bicentennial the licensing of all universities and more than 100 technological institutes will be
completed.
Bibliography
● https://rpp.pe/campanas/contenido-patrocinado/5-retos-que-enfrenta-la-educacion-en-el-peru-noticia-
1156259
● https://peru21.pe/lima/peru-tasa-analfabetismo-reducido-ultimos-cinco-anos-nndc-426696
● https://andina.pe/agencia/noticia-minedu-2019-aumentara-30-inversion-infraestructura-educativa-
737679.aspx