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Instituto Tecnológico de Santo Domingo

Challenges of the labor market in the DR: low participation, salary gaps and change in talent priorities

Within the framework of the third week of the Science of Instituto Tecnológico de Santo Domingo (INTEC), experts analyzed the main challenges of the Dominican labor market

Challenges of the labor market in the DR: low participation, salary gaps and change in talent priorities

SANTO DOMINGO- The low labor participation at the national level, the low quality of work caused by informality and the gap that exists between employee productivity and what they receive at the salary level are some of the challenges of the labor market in the Dominican Republic.

This was considered by the economist Rolando Guzmán, past rector of the Instituto Tecnológico de Santo Domingo (INTEC), by participating, together with Armando Barrios, Vice Chancellor for Research and Liaison at INTEC, joined Martha Beato, in charge of outplacement processes and executive recruitment of the Search In company, on the panel "The future of work”, carried out as part of the activities of the third science week of the University.

In the panel, the experts analyzed the prospects for the future of work that today's society is facing and specified that the national and international labor system has evolved in accordance with technological and generational advances.


They indicate low labor participation rate in the DR

When talking about the main trends in the Dominican labor market, Guzmán pointed out that a characteristic of the Dominican labor market is that the activity rate, which measures the number of people active in the labor market, has been relatively low in relation to the Latin American region. “A lot of people of working age are out of the job market,” he said.

The expert currently participating in the Commission for the Evaluation of Teaching Performance in the Dominican Republic, mentioned the low quality of work through informality and the traditional gap between employee productivity trends and wages.

“This gap is not exclusive to the Dominican Republic, but rather a global trend that probably reflects a variety of causes,” he said. However, he indicated that this gap could be narrowing in the last five years.  

The specialist added that the elasticity of employment with respect to GDP growth in the country is also low compared to the average in Latin America. “In the Latin American region, the average elasticity is 0.65, that is, when economic activity grows 1%, employment grows 0.60. In our country, this relationship has fluctuated around 0.4”. This translates into that growth impacts less in the Dominican Republic than in the Latin American region in relation to employment.

Among the pending issues for a labor reform, Guzmán pointed out the review of the unemployment protection system, and the evaluation of alternative schemes, such as layoffs and unemployment insurance, among other mechanisms. 


 They identify patterns in the candidates of the current labor market

Martha Beato, psychologist and executive recruiter at Search In, pointed out the contrast between current professionals and those of 10 years ago, as well as the strategies recruiters use to attract the talent that new companies are looking for. .

“Talent is not always knocking on doors, talent has to go out looking for it,” Beato pointed out, indicating the current interactions that take place between recruiters and job candidates. The most effective recruiting sources cited from his experience are Personal references, Linkedin, online job boards, website and social networks of the company and professional associations.

He also pointed out that new professionals have a defined purpose and seek to be in environments related to it. "If a company practices something that goes against the principles of the person, the candidate does not take the offer."

Open, inclusive work environments and healthy labor relations are other requirements that professionals prioritize, take care of their mental health and give importance to quality time with their loved ones. "The new generation not only values ​​a good salary, but also being able to enjoy life."

Armando Barrios, vice-rector for Research and Linking at INTEC and moderator of the event, said that "the world of stability in new generations practically does not exist" since current professionals have less time spent in jobs, they move from one place to another identifying “better opportunities”.

His comment was joined by Guzmán, who mentioned that temporary employment occurs to a large extent in Latin America. For this case, I take three countries as a reference: Argentina represents 13% and Ecuador and Peru share 60% respectively of temporary jobs.

On the other hand, the expert Martha Beato stated that companies prioritize soft skills when hiring a person, including communication, active listening, leadership and time management. The areas with the greatest demand at the labor level that she mentioned are Technology, Complete y Resources processes.

Based on the arguments presented, Barrios pointed out the need for better regulations, "not rigid or strict, but effective."

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