Ceasing Mining Activity Raised Unemployment In Coclé, Columbus (Colón) And Chiriquí
Date
8/7/2024 11:33:21 PM
(MENAFN- Newsroom Panama)
In the provinces of Coclé, Columbus (Colón) and Chiriquí, due to the cessation of mining operations, an increase in the unemployment rate is expected in the short term.
Unemployment has a direct effect on the country's economy, which is currently in a very bad state.
The cessation of mining operations not only directly affected unemployment, in relation to direct and indirect hiring, but in the short term, an increase in the unemployment rate is expected across the country, reaching 9.3%, i.e. 38 thousand new unemployed.
At the provincial level, with the cessation of operations: 13,222 jobs in the province of Coclé were affected, and in the short term it is estimated to have an unemployment rate of 13.1%.
In Columbus (Colón), 4,628 jobs will be affected, rising to an unemployment rate of 13.1%.
In the specific case of the province of Coclé, the economist of the National Council of Private Enterprises (Conep), Alfredo Dubois, said that estimates of this organization put unemployment in that region at 26%.
In statements to television media, Alfredo explained that because of the closure of the mine, where 50% of the workers were from that province, unemployment has risen to 26%.
"Coclé is the most affected province adjacent to the location of the mine, so that has to be looked at very carefully, because it is not only a matter of the mine workers, but of the whole economic waterfall that came behind."
In the case of Chiriquí, he stated that despite being very far from the mine, there is still concern for the closure of the mining activity.
In that sense, Dubois stressed that there are several impacts on an economic activity, which is called "waterfall effect or multiplier effect", where salary has a multiplier effect that is at 1.78; that is, for every dollar paid in salary, there is 2.78 that is "distributed into an economic cycle".
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