Paraguay has been affected by employment impacts of COVID-19 like many other countries. However, it has been less affected than the region. Comparing the second quarter of 2020 with the second quarter of 2019, employment rate fell by 4.3 percent, and in the third quarter of 2020 it was 2.4 percent lower than in third quarter 2019. To protect workers in the workplace, the promotion of teleworking and, later, the so-called "smart lockdown" scheme for a gradual return to workplaces has been considered since the beginning of the crisis. The report reflects on two central elements in the response, related to the design and implementation of subsidies: one for formal workers whose employment contracts were temporarily suspended, and the other for informal workers. It also highlights how the COVID-19 crisis strongly drove the digitization of the services provided by labour and vocational training institutions, as well as leading to significant growth in the management capabilities and timely analysis of administrative records for purposes of analysing the employment situation.