Low growth and global crisis slow job recovery in Latin America and the Caribbean

• “Latin America and the Caribbean have seen a significant recovery in employment following the COVID-19 pandemic, but the region’s labour markets face a complex and uncertain future that could be marked in 2022 by rising unemployment, informality and increasing numbers of the working poor”, the International Labour Organization (ILO) said.
• Low economic growth, high inflation and a global crisis aggravated by Russia’s aggression against Ukraine have affected both the quantity and quality of jobs generated in the region and could prolong the impact of the pandemic crisis on labour markets.
• Data from the first quarter of 2022 show an average unemployment rate in the region of 7.9%, an employment rate of 57.2%, and a labour force participation rate of 62.1%. These are almost the same levels as in the first quarter of 2019.
• Another factor of concern is high inflation, which has a significant impact on labour markets. Prices began to increase in 2021; however, the war in Ukraine has affected the availability of food and energy, among other factors, and this directly affects the level of real labour income, warns the ILO.
• Claudia Coenjaerts, acting ILO Regional Director for Latin America and the Caribbean stated that given the current scenario “countries in the region should focus on promoting the creation of more formal jobs, in coordination with active policies, vocational training and sectoral policies, the report says. Advocating for the minimum wage and collective bargaining, within a framework of social dialogue is also essential.”

(Source: Caribbean News Global)