Panama: Informal Sector of the Economy Decreases

In 2006 there were 957.017 insured people and Panama in 2011, the number exceeded 1,2 million, indicating that the informal sector of the economy has declined.

Tuesday, July 10, 2012

From a press release from the Ministry of Economy and Finance:

According to the publication "Panama in Figures", from the National Institute of Statistics and Census, in 2006 in Panama had 957.017 registered for social security and for 2011, the number exceeded 1,2 million, indicating that the informal sector of the economy has declined . This is a great reference for estimating the level of formality of the economy, because as people are insured, their working relationship and commercial operations are formalized, said the Director of Economic and Social Analysis at the Ministry of Economy and Finance, Roger Alvarado.

Alvarado said that this can be quantified and seen when traveling on busy public roads in the city, because there are fewer vendors at traffic lights, a situation that was different in previous years when there were greater numbers of such merchants. This phenomenon also occurs in areas surrounding the capital city and the rest of the country's urban areas, it is more difficult now to find people to clean the gardens or homes. This is easy to verify in newspaper’s classifieds sections.

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