The private employers chamber says that its members are losing confidence in the government, and this is one reason there are 228,000 persons jobless in the country.
The chamber, the Unión Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado, said it was alarmed by the increase in unemployment and the closing of companies.
The chamber in a statement noted that dozens of Costa Ricans have lost their means of income with the closing of Wendy’s and Baglemen’s and the decision by Avianca and Volcano to reduce job slots.
The chamber also cited firings by other employers, including Intel, the Bank of America, Ichiban, Hotel La Condesa, Hotel Europa, Cartex and Banco Cathay.
Elevated electrical rates that have increased twice the rate of inflation in 2014 and deficient infrastructure are factors that cause unemployment, said the chamber.
There is a lack of confidence in the government because of the continuing fiscal deficit, the approval of a 2015 national budget without any cuts and legal insecurity generated by President Luis Guillermo Solis’ lifting of a veto on a labor reform bill that had been imposed by a past president. A slowing economy also has employers worried, the chamber said.
Reversing the unemployment trend is difficult but possible, the chamber said. It suggested stimulating confidence with less bureaucracy, legal security and the efforts of the government. It called for a declaration of emergency by the government over unemployment.
The action by Solís to lift the veto imposed by then-president Laura Chinchilla is being litigated before the Sala IV constitutional court. Solís also lifted one imposed years ago by then-president Óscar Arias Sánchez. That action is in the court, too.