Daily Archives: April 17, 2018

Salaries of professionals fell by 20% between 2005 and 2017

People with post-graduate degrees are facing low salary offers which does not equal to their capacities … this government, specially evo is always demeaning education, he said he does not like to read, he said he can do anything and lawyers can fix that …

Some of his appointees have minimal if any academic training to tackle their responsibilities: i.e. a woman who was appointed as his first Minister of Justice, with only five years of primary school … the issue is not the she is a woman or an indigenous person, the issue is that public servants must be very competent and qualified to serve as authorities in their sectors.

Of course there is underemployment on those of us that have academic degrees. A great number of us, with Ivy League degrees have had to leave the country or not work at all, as our training is not valued. The above is an opinion of Bolivian Thoughts.

Pagina Siete reports:

Salaries of professionals fell by 20% between 2005 and 2017

Between 2005 and 2017 the average real salary of professionals decreased by 20%, while salaries of managers and administrators decreased by 11%, according to an analysis by the National Chamber of Commerce (CNC).

Only unskilled workers (without any educational level or with incomplete primary education) increased their salaries by 60%, which shows that the real remunerations paid to employees have been inversely proportional to the level of qualification. The income of skilled workers with university studies or higher technical level rose by only 16%.

According to another analysis by the Center for Labor and Agricultural Studies (CEDLA), the average real wage or purchasing power of workers in the private business sector registered a slight positive variation of 0.1% between June 2016 and June 2017 and the Salary increases generally benefited only the most specialized workers.

“In 2015 and 2016 the average real wage increased by 3.7% and 0.4%, respectively. Therefore, we are facing a significant loss of the purchasing power of the average private wage that limits the possibilities of the workers to acquire the goods and services that are part of their habitual consumption and others that they need to improve their quality of life”, said the CEDLA researcher, Silvia Escóbar.

She added that until 2015, only managers and workers saw the purchasing power of their salaries improve, the latter due to the increase in the minimum wage.

In 2016, the panorama changed because the only ones that improved the purchasing power of their salaries were specialized workers, among them those who have job stability and, above all, many years of work in companies. The increase in this sector was 3.1% (see graph).

For other workers the real minimum wage decreased by 2.2%, that of professionals by 2.1% and that of managers and administrators by 4.9%, reveal the data of CEDLA.

Escóbar said that the level and salary increases in the positions that require higher qualifications were decreasing with time, as a result of a business strategy of saving labor costs.

“Thus, it was the professionals, technicians and employees with the most experience, the workers who received the lowest nominal increases, even in times of progressivity in the government regulations of annual indexation, so that inflation did its thing, limiting its ability to purchase,” she said.

Since 2016, also the less qualified workers were affected by these same conditions, which leads to the general deterioration of the purchasing power of the average private salary.

Workers in the public sector are similar, since the real average wage at the end of 2016 decreased by 0.7%.

The same thing happens with retirees, particularly in the new pension system (SIP), whose income with or without solidarity fraction, lose their purchasing power year after year.

For the Fundación Milenio, both in the public and private sectors, the salaries of professionals have deteriorated.

“In both cases segments with a higher degree of education, such as professionals with higher education, have been more disadvantaged. On the contrary, the labor force with less education has achieved significant salary improvements”, she observed.