Construction in Panama has declined slightly, reflecting in the amount of labor contracts. Recently, the Ministry of Labor and Workforce Development (Mitradel) published a report in which a decrease in hiring from last year (through August) and this year is recorded during the same period.

Construction in Panama – Gogetit Highlights

* Last year, there were recorded until the month of August, 189.102 contracts, while this year on the same period 188.101 people were hired.

* The employment contracts during the month of August, rose 3.2% compared with the same period last year, but in the accumulated until August decreased 0.5%.

* Last year, until August, 72.719 jobs were recorded in construction, while to the same month this year 68.141 contracts were reached.

Construction in Panama seeks to recover gradually. In early 2015, the sector showed almost no progress, but now, according to a report by the Ministry of Labor and Workforce Development (Mitradel), the activity was more dynamic during last August was construction, with 8.164 new jobs, compared to 7.534 recorded in August 2014.

According to information published by Panama America website, and according to experts, these figures cited above, indicate what is that construction activity begins to stimulate because of the endorsement of major contracts, such as the line 2 of Panama Subway.

José Batista, advisor to the board of the Panamanian Society of Engineers and Architects (SPIA), explained that these improvements in the construction sector can be treated by Odebrecht contract for the expansion of the subway and already endorsed contract projects in Colón, representing a major boost to labor contracts.

Despite the increase in labor contracts, the construction sector continues to face some difficulties on the approval of plans. The construction sector was hit hard due to the suspension of projects by the Government as well as the delay in endorsing major contracts, helping to accentuate the slowdown.

Other activities also showed dynamism, according Mitradel, were trade, hotels and restaurants, administrative, industry, manufacturing, and financial service activities, among others.

Read more information here (Article in Spanish).

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Silvia Merida Pellicer
Gogetit Content Manager. Author of important reviews for Gogetit News, “The #1 Source for real estate news in Panama.”
Specialized in the search and analysis of the most important news about real estate in Panama.