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Labor demand grew in May, what can happen in the second half?

Labor demand grew in May, what can happen in the second half?
Labor demand grew in May, what can happen in the second half?

Demand for employment registered an increase of 14.7% in May and reached its highest value since December 2022, according to the latest Labor Monitor of advice, which revealed a total of 5,984 job opportunities.

Compared to the same month last year, the improvement was 10.3% and, with a projection of some 33,000 opportunities for the first semester, the question remains as to whether the trend towards stability It may break in the second half of the year, after the fall of 2023.

From Advice they assured that the data for this month and next “will be crucial to determine if May’s growth marks a Change of trend or it is an exception to the observed stability.”

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Favorable indicators for employment

Between the macroeconomic indicators that could drive this scenario appears the growth of Uruguayan economy, which is expected to be up to 4% this year, well above the low dynamism of last year.

Added to this is that the projections of employment are favorable and more and more employers are considering hiring staff next year. Finally, there was an increase in the hiring of personnel in key sectors such as Commercial Management and Marketing, which are the most demanding.

The warning factors

One of the aspects that can distort reality according to its evolution is the real salary, which is at a record level and, although it encourages consumption, it discourages hiring by labor costs.

Something similar happens with the strengthening working market, which could imply a decrease in demand if vacancies are filled. Meanwhile, the election year fills employers with caution, who in some cases prefer to wait to see whether or not there will be a change of political sign.

The unfavorable signs

Among the factors that harm the growth of demand, the problems of competitiveness, that made themselves felt in a key area such as IT sector.

At the same time, what happens with the regional context will be important, since Brazil is experiencing a crisis derived from flooding that could impact exports, logistics, inflation and tourism.

Finally, the economic performance of Argentina, which fell 5.3% in the first quarter and projections anticipate a decrease of 3.5% in the year, affecting the Uruguayan labor market.

Source: Ambito

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