Service sector consolidates job leadership in Paraguay with 116,513 new positions

Paraguay's labor market experienced significant growth in the second quarter, with the service sector spearheading the creation of 116,513 new jobs. This surge has solidified the sector's dominance, now representing 69% of the country's total employment, according to figures from the National Statistics Institute (INE).

The tertiary sector, encompassing commerce, hotels, and restaurants, was the primary engine of this expansion, adding 73,575 jobs and bringing its total workforce to 1,063,284. This indicates a strong reliance on consumption-driven activities and urban economic dynamics. Another substantial contributor was the communal, social, and personal services segment, which absorbed 50,850 new positions, employing a total of 828,077 individuals. This segment now represents the largest share of employment within the broader services category.

In contrast to the booming services sector, the industrial sector, including manufacturing, saw a decline, losing 8,309 jobs. This shift reflects a broader international trend where service-oriented economies are increasingly outpacing traditional manufacturing hubs. Economist Manuel Ferreira noted that technological transformations and automation are reducing the need for labor in industrial sectors, presenting a challenge for future employment strategies.

Furthermore, the INE report highlighted that while overall employment increased, underemployment remains a concern, particularly affecting women. Approximately 33% of women are employed in sales and services, compared to 15% of men in similar roles, suggesting potential disparities in job quality or stability within these growing sectors.

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The Paraguayan pattern reflects an international trend: employment is growing primarily in service activities. This is a persistent process, something that is here to stay.