Even though Argentina’s unemployment rate clocked in at 9.6 percent in the second quarter of 2018, a new survey released this week by the Small and Medium-sized Business Observatory Foundation (FOP) concluded that the labor market also suffers of another big problem: most companies cannot find suitable candidates for open positions.
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According to the report, 81 percent of Small to Medium businesses (Pymes) are seeking technicians (electricians and metalworkers, for example) but find it difficult or sometimes almost impossible to find any.
“It is the clearest demonstration of the structural problem that we currently have,” says the executive director of FOP, Vincente Donato. “The hunt for workers has decreased due to the recession. However, there are at the same time, 26,000 companies employing 10 to 200 workers, those that we call the small and medium-sized companies, are unable to hire the profiles that they require,” Donato added.
The report goes on to highlight that a main reason for this gap has to do with the lack of adequate training opportunities for these jobs, particularly courses aimed at young adults trying to enter the workforce.
However, the FOP shone some light and offered solutions on improving the situation portrayed in the report. Currently many small businesses are wary of hiring and training young workers due to the legal predicament that ensues. Nonetheless, Donato assured businesses that they can employ an Occupational Hazard Insurer in order to protect both the employer during the time period, shielding them from potential lawsuits resulting from injuries sustained during the working hours.
Donato further urged that businesses and schools should build stronger links, he says, “We need to connect them better, they are totally disconnected today.”, According to the FOP, this opinion is supported by, 85 percent of companies, who recognize the importance of creating a greater link between schools and businesses – 50 percent of the businesses also were enthusiastic in receiving students under the modality of professional practices.