Blame COVID-19? But blame informality too (or maybe more) Employment nationwide decreased by 40% in the second quarter of 2020. Peru is one of the countries in the region most affected by the pandemic, both in terms of declines in economic activity and in terms of rates of infection and deaths from the disease. On the economic side, unemployment and informality increased significantly, wages and working conditions deteriorated, and many companies were unable to stay afloat. All of this has been further aggravated by the political situation (three presidents in a week) and the growing division among political leaders. But the economic symptoms that Peru is suffering from are largely the result of pre-existing conditions. For instance, informality was very high in Peru before the pandemic, and not only has it worsened after the severe quarantine was implemented earlier this year, but it also aggravated the labor market situation.