Service Sector Leads Employment Recovery in Paraguay

Paraguay’s labor market is experiencing positive evolution, according to the latest data presented by the National Statistics Institute for the last quarter of 2024. The analysis reveals notable growth in the service sector, which is consolidating its position as the main employment generator in the national economy, highlighting this sector’s resilience against the automation affecting other areas.

Official statistics show that the Paraguayan workforce reached 3,139,430 workers during the fourth quarter of 2024, representing 71.4% of the population over 15 years of age. This indicator registered an increase of 0.3 percentage points compared to the same period in 2023, which means an incorporation of 37,823 people into the labor market.

Economist Manuel Ferreira, former Minister of Finance, points out that the service sector shows a significant upturn in job creation. This growth is mainly attributed to the nature of the sector, where human presence continues to be indispensable, unlike the industrial sector, which is experiencing increasing mechanization. The resurgence of commerce within the service sector is identified as the main driver of this labor expansion.

Regional dynamics also positively influence the Paraguayan labor market. Economic policies implemented in Argentina have generated a favorable effect for Paraguayan commerce, increasing the flow of Argentine consumers crossing the border in search of better prices. This situation has contributed to strengthening the service sector and, consequently, job creation.

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In the construction field, a gradual recovery has been observed since the middle of last year, although the sector has been affected by the reduction of state investments in infrastructure. This situation highlights the importance of diversifying investment sources and developing projects that boost job creation in this sector.

The labor market analysis underscores the need to establish a regulatory framework that facilitates the attraction of international investments in infrastructure. Expectations point to the conclusion of important investment contracts before the end of the current presidential term, which could further strengthen job creation in various sectors of the Paraguayan economy.

Artículo en español aquí.