Starting next year, the government will provide an incentive to companies with the aim of promoting the hiring of young employees, subsidizing between 80% and 100% of the wages.
The measure targets young people between 16 and 20 years old, with the aim that they can combine study with jobs of up to 20 hours a week, within the framework of the “I Study and Work” program promoted by the Ministry of Labor and Social Security (MTSS).
The government will subsidize up to 80% of the salary and up to 100% if they are people with any disability. The program includes up to 15,000 pesos per month (about $382) for a period of between 6 and 12 months.
Once the internships end, if the companies keep the young people on their respective staffs, they will be exempt from employer contributions until the workers turn 25 years old.
The problem of youth unemployment
“In Uruguay he unemployment among young people is three times more than the average unemployment rate for the entire population,” said the Minister of Labor and Social Security, Pablo Mieres, when leading a press conference in the labor portfolio.
It is worth noting that in 2019 the rate of unemployment of those under 25 years old was 31% and currently it is close to 26%. Despite this decrease, it is at levels three times higher than the average for general unemployment.
In fact, the latest survey of the INE indicated that unemployment in people up to 24 years of age rose to 26.5% of the total, while that in the 25 to 29 age group also grew.
In turn, the activity rates among youths 14 to 24 years old and 25 to 29 years old were 42.8% and 87.3%, respectively, while the employment rate was 31.5% and 76.5%, respectively.
Source: Ambito
