In Peru, more than 70% of the population works in the informal economy, according to the National Institute of Statistics and Informatics (INEI). What are the mental health challenges faced by people working in the informal sector? We spoke with Tesania Velázquez, Senior Lecturer at the Pontifical Catholic University of Peru (PUCP). Tesania holds a PhD in Psychology from PUCP and a Master’s degree in Clinical and Forensic Assessment from the University of Salamanca, with extensive experience in areas such as community mental health and gender.
Are people working in the informal sector more likely to experience mental health challenges?
We must recognize that, in our country, the majority of the population is engaged in informal work, a reality that became particularly evident during the pandemic. Statistics show that informal employment represents the largest share of the labor market in Peru, affecting both men and women.
Therefore, it is clear that the conditions associated with informality do not contribute to people’s socio-emotional well-being, not only because of labor insecurity, but also due to the uncertainty of not knowing whether they will be able to meet essential needs, including food and household expenses. As a result, many people experience ongoing distress because they do not know whether they will be able to make ends meet, and this sense of insecurity and uncertainty can lead to emotional distress. This is reflected in symptoms of stress, anxiety, and depression.
Furthermore, we know that due to gender-related factors, women’s situation is even more challenging. For women, it is not only a matter of dealing with informal work, but also of taking on additional caregiving responsibilities within their families. In this regard, they may face a greater likelihood of experiencing socio-emotional distress.
Formal employment provides minimum conditions and protections: people know they will have a defined schedule, a fixed income, and, in some cases, access to employment benefits. Informality removes these safeguards and therefore places people in a situation of greater vulnerability.
How is economic insecurity linked to the prevalence of mental health challenges?
Mental health is shaped by social, economic, and political factors, and I believe it is essential to consider this reality within the national context we are currently experiencing. We know that poverty indicators remain a significant concern and are, in fact, continuing to increase. More and more individuals, families, and communities are facing situations of severe economic insecurity, which prevent them from living with dignity and accessing minimum living conditions.
Poverty generates significant socio-emotional impacts, as do political instability and social crises. This impact and the resulting distress are intensified by the constant need to find ways to cope with these circumstances. There is a greater emotional burden, not only in trying to meet basic needs, but also in the struggle to survive. When we also consider the current levels of insecurity, crime, and extortion in Peru, the situation becomes even more critical.

Tesania Velázquez
The current wave of insecurity has been particularly affecting small businesses, many of which operate within the informal sector. Could you elaborate on how this situation impacts mental health at both the individual and community levels?
It is important to recognize that the situations of violence, crime, and extortion currently affecting Peru are generating, among people—and especially among entrepreneurs and informal workers—a profound sense of insecurity and a constant state of alert.
People are not only concerned about going to work and making ends meet; they now also face the added concern of staying safe, avoiding extortion, and protecting their lives. Death and violence are becoming increasingly normalized in our country.
It is important to add that, in the face of this situation, the lack of responsiveness from authorities increases frustration and socio-emotional distress. We are facing a critical situation, but when this crisis is compounded by the inaction of authorities and political leaders, it results in even greater frustration and suffering.
There is suffering and social distress, which are indicators that people are not living with peace of mind or experiencing adequate living conditions. Recently, I visited a school that had been affected by extortion, where the murder of a parent had taken place at the school entrance. What we found was a profound sense of distress among teachers who were afraid to go to work and even to get up each morning to attend their jobs because their lives were at risk. Schools used to be safe spaces for children, students, and teachers; today, they are no longer perceived as safe environments.
Therefore, all of these factors are contributing to a situation of emotional distress that is leading to serious mental health challenges in our country, further compounding the issues we were already facing during the pandemic. This is a situation of crisis upon crisis, affecting people’s well-being.

Photo: El Comercio Group
What public policies or intersectoral initiatives could be implemented to address this issue?
Mental health is a priority that should be consistently part of the public agenda and debate. However, we continue to wait for a crisis, such as the COVID-19 pandemic, before taking action and addressing this issue.
We know that, in our country, although services have become increasingly decentralized through the establishment of Community Mental Health Centers, we are still not meeting the mental health needs of the population. And we are not meeting this demand because we must understand that mental health is everyone’s responsibility. We need to promote mental health in workplaces, schools, and universities: we cannot simply wait for people to seek care at a service, because either they do not reach those services or they do not perceive them as spaces where they can receive support.
Public policies should be based on intersectoral dialogue, and unfortunately, in our country, establishing effective intersectoral collaboration remains challenging. The Ministry of Health works on one side, the Ministry of Education on another, and the Ministry of Labor and the Ministry of Production separately, without creating the necessary bridges for dialogue that would enable cross-cutting policies that involve all sectors and can truly address mental health with the priority and urgency it requires today in our country.
Thank you very much, Tesania. Is there anything else you would like to add?
The crises we are experiencing at the economic, political, and social levels affect not only individuals, but also something fundamental: their ability to trust.
If we can no longer trust the people who live beside us or those around us, and if we can no longer trust our authorities, we lose what allows communities to exist: bonds, connections, and a sense of society. This is what is happening in our country.
From a mental health perspective, our ability to trust institutions, workplaces, and authorities is being harmed. This, in turn, is undermining our capacity for dialogue and our ability to build communities, directly affecting each person, because trust is one of the most fundamental elements of life. It is what allows people to move forward, get up each day, carry out their responsibilities, work, and study. However, when that trust is broken within spaces that should be safe, such as families and schools, and when it is fractured at the national level, we enter a profound cycle of harm and socio-emotional distress.
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