Colombia jobless could grow by more than 1 million over coronavirus
BOGOTA (Reuters) - The number of unemployed in Colombia could grow by 1.15 million people owing to the crisis caused by coronavirus pandemic, which has resulted in a more-than month-long quarantine, according to a government document.
Even before the outbreak of COVID-19, Latin America's fourth-largest economy had one of the region's highest levels of unemployment. Nationally, 12.2% of the population was out of work while 11.5% of city dwellers were unemployed, equal to just over 3 million people.
"Findings from the Integrated Household Survey show there have been approximately 1,146,000 million new layoffs due to the pandemic," said a government decree published on Thursday, which also announced additional aid resources.
Thousands of businesses have been forced to close due to restrictions on movement as part of a health emergency declared by President Ivan Duque to halt the spread of the virus, which has infected more than 3,200 people and killed 144.
The document did not say if the figures included people who might be able to return to their jobs once businesses are allowed to re-open.
The government has taken a series of measures to distribute billions of dollars in welfare to the country's poor and to guarantee finance for independent workers and companies as it looks to avoid economic catastrophe and destruction of the labor market.
Despite the measures, businesses have warned of difficulties preventing the flow of resources and have started to cut workforces.
According to the decree, some 3.7 trillion pesos ($1.85 billion) are needed to give grants to the unemployed.
"With the aim of mitigating the effects on employment and the quality of life of older and unemployed adults in this emergency, it is necessary to adopt measures which allow benefits to continue being granted," the document added.
($1 = 3,920.83 Colombian pesos)
(Reporting by Nelson Bocanegra; Writing by Oliver Griffin; Editing by Leslie Adler)
