American Expatriate Costa Rica

Businesses increase intention of expanding payrolls

The expectations of entrepreneurs to increase their payroll by the end of the year improved slightly compared to the third quarter of the year. The respite is still tenuous and the projections are still lower than a year ago, but at least it breaks the declining trend and represents an improvement.

Thus, while for the first quarter of the year there were only 9.7% of entrepreneurs who wanted to increase their payroll, now by the end of the year, that percentage rose to 11%. In the same way, the number of entrepreneurs that for the first quarter estimated that they would have to fire people reached 24%, now that percentage was reduced to 17%.

The data is revealed by the most recent business expectations report prepared by the University of Costa Rica.

In almost all sectors, there are prospects for hiring favorable labor compared to the third quarter; services and agriculture show the greatest increase (17.6 and 17.5 percentage points, respectively). Only construction shows a drop in employment expectations compared to three months ago,”

the report indicates.

The businessmen of the construction sector who indicated that they will reduce their payroll, said that the decision is due to the conclusion of construction projects during the period, as well sue to low levels of investment.

Entrepreneurs who show greater positivism set their hopes on sales and higher production that represents the high season of the end of the year.

crhoy.com