Governor Alejandro García Padilla's administration celebrates milestone of 55,305 new jobs
July 2, 2014 – San Juan – Governor Alejandro J. García Padilla announced his administration has promoted the creation of 55,305 new jobs in Puerto Rico, most in the private sector, since taking office on January 2, 2013, thus exceeding his pledge of creating 50,000 new jobs in 18 months.
The new jobs’ breakdown per sector as follows: 10,434 in Commerce; 9,945 in Services; 5,195 in Manufacture and Technology; 1,692 in Tourism; 4,497 in Agriculture; 16,765 in Private Construction; and 6,777 in Public Construction.
“Four years ago, the scenario consisted of the dismissal of 30,000 working fathers and mothers from government; thousands of jobs had been lost in the private sector, the government’s revenues were going down and, on top of it all, the government took loans without having the resources to pay back that money. To deal with that scenario, we devised a plan to stabilize the government’s finances, reduce spending and promote job creation, mainly in the private sector”, said the Governor in a special presentation held at the State Department.
The strategy of García Padilla’s administration, in the short term, sought to stop the loss of jobs, strengthen the job market and establish realistic goals that would show the ability of the Puerto Rican people to reinvent itself, innovate and overcome its challenges. On a mid and long-term basis, the plan was to create a new incentives structure that would link government benefits to the creation of full-time job quotas. That strategy, which was the first phase of an economic stabilization plan after a 5 year recession, was also the prelude to a comprehensive economic development agenda of consolidating, expanding and diversifying our industrial base; to build a diversified economic model that would allow Puerto Rico to push ahead strategic sectors, make a better use of our competitive advantages and position the country as a competitor and a fully integrated member of the 21st century’s global economy.
The Governor explained that “these 55,305 new jobs are the product of hard work in three main areas: access to capital, incentives for strategic sectors and faster permits. Beyond that accomplished goal, we were also able to reduce government spending without firing anyone while we created jobs in the private sector. In other words, we were able to revert the historical tendency that made the government the main employer in the Island, while the private sector kept getting smaller. Because of that, the new 55,305 jobs have an even bigger significance. With them, our long-term economic development strategy has proved to be successful, signaling a new path for our country.”
He indicated this new path will provide a diversified economic model based in the priority sectors of manufacture, services, tourism, agriculture and entrepreneurship. This economic model opens up a world of possibilities for all Puerto Ricans and lays the groundwork for the future generations of our job market. Adding that, it guarantees that the country’s industrial base changes effectively into a knowledge-based and service-exports economy, strong enough to allow Puerto Rico to compete with the best in the world. Also, guarantees the strengthening of historically productive sectors, such as the manufacture of pharmaceutical products and medical instruments, bio-agriculture and tourism. It gives new, strong life to the battered agricultural sector the island had in 2012 and gives new incentives to small businessmen.
García Padilla’s gave the opening and closing remarks on a special event to mark the milestone of the 50,000 new jobs in 18 months, where five Commonwealth agency’s chiefs also outlined each economic sector accomplishments, including confirmation by external sources that the government used the right trustworthiness system and job verification methodology, as well as an analysis of the economic impact of these jobs and what would have happened if the initiatives that made it all possible were not taken.
Particular sector presentations were given by the Secretary of the Department of Economic Development and Commerce, Alberto Bacó; Myrna Comas, Secretary of Agriculture; Antonio Medina, Executive Director of Puerto Rico’s Industrial Development Corporation (PRIDCO); Frankie Chévere; Executive Director of Trade Company; and Ingrid Rivera, Executive Director of the Tourism Company.
The Governor summarized, “this sustainable economic development strategy, that today starts bearing fruit, also represents what we are: a Caribbean country with a highly skilled workforce; an enviable geographic location and fiscal autonomy within the U.S. regulatory and jurisdictional frame, which makes us a unique place in the world to invest and establish commercial relationships. So we cannot minimize the importance of this moment.”
The Commonwealth’s government was able to create over 50,000 jobs in the last 18 months while eliminating a $2.2 billion budget deficit, reforming the three main public retirement systems, dealing with the solvency of public corporations and signing into law the first balanced budget in more than 20 years. It was able to raise the number of employees in the private sector while reducing the number of government employees in about 15,000 without firing a single person.
García Padilla also expressed his gratitude to his economic and fiscal teams; lawmakers and mayors; local entrepreneurs and corporations; and to the more than 50,000 men and women who decided to step forward and join the labor market, becoming main actors in the transformation of Puerto Rico.
He also announced his administration will now work on a tax reform that does justice to the productive sector, simplifies the government apparatus in service of economic development, transforms the education system to give more opportunities to young people and stimulate local production until sustainable growth is achieved.
“But this is not the end of our work and our challenges. I’m fully aware we have a lot more to do. The Agenda for Recovery I presented in my State Message shows the path we will follow the next four years. There we sealed our commitment to keep working to bring Puerto Rico out of its most difficult time in modern history. The path is already traced, the union of willpowers always succeeds and, for that reason, I reiterate my deep conviction that Puerto Rico will triumph,” said Garcia Padilla.
After finishing his remarks, the Governor presented two documents, produced by external sources, which confirm the trustworthiness system and job verification methodology and the economic impact analysis.
