Social Security nearly unsustainable due to high unemployment

Social Security is reliving a red alert status issued in 2003, when the ratio of contributors to pensioners threatened unsustainable levels and made it necessary to rebuild the system. But compared to last time, we are in the midst of a longer, harsher and more unclear stretch of economic trouble.

Data from the worst January of the crisis showed that 283,684 people lost jobs (1.65% in a single month), reducing the number of people contributing to Social Security benefits to 16,946,237. The number of people receiving benefits rose to 8,871,435. Should the 17 million person barrier be broken, each pensioner would be sustained by contributions of 2.42 workers.

With the contributor-pensioner ratio so close to 2:1, experts consulted on the matter warn that the problem is quickly worsening nearly one month after the Social Security program went into the red. "We have fewer active workers at a time when more are needed," said Fenac vice president Francisco Aranda.

Secretary of State of Social Security, Tomás Burgos, confirmed the significance of the drop in contributions yesterday. He said that the ratio of contributors to pensioners is "essential for sustainability." Still, Burgos denied that pensioners are in danger and played down the likelihood that the Social Security program would dip into its reserve fund, the emergency money used to pay pensioners should the program run out of funds.