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News » Outsourcing ban hinders Peru’s economic recovery

Outsourcing ban hinders Peru’s economic recovery

Outsourcing ban hinders Peru’s economic recovery

The partial elimination of labor outsourcing will likely deter the economic reactivation process, overall competitiveness, and employment in Peru.

In a seminar called “Perspectives of Reactivation and Outsourcing in Peru,” Peruvian Institute of Economy (IPE) General Manager Diego Macera, labor lawyer Jorge Toyama and National Society of Industries President Ricardo Márquez voiced their concerns on this rule.

Macera said that the country still has a “very precarious recovery” in the labor market as wages decrease and informal employment increases. He stated that prohibiting outsourcing in “nuclear” activities could prevent job creation.

Toyoma added that the ban is “one of the most questioned” rules in the history of Peru. He stated that this move “is unconstitutional and a similar measure in Mexico caused the loss of more than a million jobs.”

The labor lawyer emphasized that limiting outsourcing could force formal employment and micro-enterprises to close. 

Marquez, for his part, said that the partial outsourcing ban harms the entire Peruvian industry at a time when there is no work in the country.

This issue, he noted, “has to be analyzed in the National Labor Council, in which the State, workers and employers participate, in order to technically determine which activities are affected.” 

Read more here.

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