Description

The performance of firms has moderated with respect to the beginning of the year, while disparities remain across sectors and regions.

Firms perceive that their performance has lost some momentum compared with the first months of the year. This was expected in some sectors, such as wholesale and retail trade and tourism, which had benefited from what they described as a particularly good summer.

The main contrast continues to be observed in the north of the country, where for several quarters the mining sector has been reported to be driving investment and activity in other sectors.

Meanwhile, construction maintains a lower performance compared to other sectors. However, there are differences among the various segments, with private real estate sales being the most depressed. The causes behind the deterioration in this sector are diverse and include problems in access to financing by these companies, the implementation of new rules and regulations, rising costs, weakening of economic expectations, and problems and/or delays in obtaining permits, among others (Box I).

With no major recent changes, firms continue to operate with fewer workers, reflecting the staff adjustments they have been making in recent years.

As can be seen from firms’ responses, there has been a growing trend towards operating with smaller workforces in recent years, driven by two major factors (without a specific weight): on the one hand, the introduction of new technologies and efforts to optimize processes; on the other, rising labor costs and regulatory changes.

In some cases, this has resulted in a reduction in the number of workers in the firm; in others, it has led to a change in the profiles sought. Some firms note that the introduction of new technologies has been particularly prevalent in jobs where the workforce is predominantly female, such as wholesale and retail trade, fruit production, and administrative services.

In addition to these trends, there is the cyclical evolution of each sector. In some of them, staffing remains low, considering that activity has not fully recovered.

In terms of new hirings, interviewees generally report that they now face less difficulties. However, shortages persist in some specific profiles, particularly for the technically skilled. This is accentuated in capital-intensive sectors such as mining, information technology, energy, and manufacturing, among others, especially in firms that have adopted new technologies or machinery in their processes.

Lending standards: fewer restrictions, but demand for credit has not yet picked up.

Firms surveyed perceive that financial conditions have not changed significantly in recent times. However, compared to last year, there is a reported reduction in constraints. 

In this scenario, demand for credit remains largely unchanged. Current and future requests for working capital predominate over other types of debt.