The Government announces incentives to hire young people

Ecuadornews:

The Government foresees the employment of 60,000 young people, between 18 and 26 years old, until 2021. This was indicated by the Ministry of Labor on the afternoon of January 2, 2018. The announcement was made through a communiqué, a day before the official presentation of the new national employment policy in the country. According to the entity, the State will provide more than 250,000 employers with a tax incentive for hiring interns. 

On December 28, 2017, the Minister of Labor, Raúl Ledesma, indicated that the State will assume 50% of the salary and equal percentage of the employer’s contribution to Social Security for the workers hired for the first time by the companies. The beneficiaries will be young people without full studies. According to the State Portfolio, the contracts for this age group will be prioritized in the sectors of agriculture (24%), commerce (20%), manufacturing (13%) and construction (9%), which will contribute with 66% of youth employment Young people with incomplete secondary education must obtain a certification to work through the institutions attached to the Ministry of Labor.

The other program that seeks to promote the Regime focuses on the sector of internships. The Government’s proposal is to return to the companies 100% of the salary paid to the intern, once the six months of practices have been completed and as long as the company decides to hire him. The Government, likewise, seeks to strengthen the My First Job project, which already existed in the previous Regime. Through this will be incorporated to young graduates or students of the last year of institutions of higher education to their first experience of employment.

The goal is to link 23 507 young people a year to the labor market (22,087 in the private sector and 1,420 in the public sector). For these programs, the Treasury will allocate some USD 270 million, although it did not specify how it will be financed or from what month the measures will be implemented. With these decisions, the Government seeks to reduce youth unemployment by 3.45% until 2021; for that year they expect to have a rate of 6.98%. Until September of last year the unemployment rate of people between 15 and 24 years old reached 38.9%. (I)

Source: http://www.elcomercio.com/actualidad/gobierno-incentivos-contratar-jovenes.html