Puerto Rico loses 80,000 manufacturing jobs in 15 years

Puerto Rico lost nearly 80,000 manufacturing jobs between 1997 and 2012, according to the latest Economic Census compiled by the University of Puerto Rico's Center for Census Information.

Jose Caraballo Cueto, the director of the center, told Efe that most of the jobs were lost as a result of the expiration of a provision in the U.S. tax code known as Section 936.

That regulation offered U.S. companies the prospect of tax-free income if they established operations in Puerto Rico.

"The elimination of those incentives was one of the main causes or problems in our economy, since many labor-intensive manufacturing companies left the country and other sectors of the economy have not created enough new jobs to absorb those workers," Caraballo said.

The number of manufacturing jobs in Puerto Rico declined from 163,605 in 1997 to 126,707 in 2002 and to 110,691 five years later. By 2012, the island's factories provided jobs to only 83,830 workers.

Local manufacturing business is weak and government programs to strengthen the sector are insufficient, Caraballo said.

"We need a stimulus to business initiatives on all levels," he said.

He also called also for a review of university curricula, complaining that business departments focus on preparing students to be managers rather than entrepreneurs. EFE

Puerto Rico loses 80,000 manufacturing jobs in 15 years