Precarity in peru

What is it about?

The role of Peru in the international division of labor is the structural condition for the persistence of labor precariousness in the country. At a more concrete level, labor precariousness is an expression of the economic and business structure of the country. An economic structure heavily dependent on the non-tradable sectors and a business structure dominated by micro business undertakings do not permit the eradication of precarious labor conditions as economic growth hinges on economic progress abroad and precariousness is the source of profit of micro companies. Labor precariousness is not an automatic consequence of Peru’s role in the globalized capitalist world, but rather the social and economic consequence of the neoliberal policies implemented in the 1990s and, in particular, the current neoliberal development model in place.

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Why is it important?

In this paper we argue that the precarious situation of the Peruvian laborers is a structural feature of the country’s economy. This argument is not based on the fact that in the last 30 years there has not been any improvement in the labor conditions and the economic situation of the big majority of the country’s EAP, but on an economic model that excludes the mass of the working population from obtaining a decent employment and the transformation of the country into a nation of micro businesses that permanently struggle for survival. Currently, around 80% of the Peruvian workforce is employed in micro companies, defined as companies that employ between one and nine individuals.

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