The labour
markets of Latin America and the Caribbean are going through a moment of
uncertainty, which can be seen in a slight rise in the regional unemployment
rate and these signs of instability could get worse in 2020. These key findings
were presented today during the launch of the 2019 Labour Overview of Latin
America and the Caribbean.
“The labour market situation is complex,” said Mr Juan Hunt, Regional
Director a.i. of the ILO Regional Office for Latin America and the Caribbean,
while speaking during the report launch event in the Peruvian capital.
The estimated average regional unemployment rate for the end of 2019 is 8.1 per
cent, compared to the 8.0 per cent rate for 2018. While the increase is small,
it still means that more than 25 million people are actively looking for
employment and they are not finding work.
This upward trend in unemployment could increase and reach 8.4 per cent in 2020
if the region continues to experience moderate economic growth. The latest
Economic Commission for Latin America and the Caribbean (ECLAC) estimates place
the average growth of 2019 at 0.1 per cent and forecast a low level for 2020 of
1.3 per cent.
The report emphasizes that there is an upward trend behind the regional average
unemployment rate. The rise in unemployment was predominant in nine of 14 Latin
American countries. In the English-speaking Caribbean, on the other hand, there
was a decrease in unemployment by 0.7 percentage points.
The Labour Overview also highlights the relevance of Brazil and Mexico in the
regional average. It notes that without including these two countries, the
average unemployment rate would register a more pronounced increase of 0.5 per
cent, according to the data as of the third quarter of 2019.
The report adds that despite the continuous increase in women’s labour
participation, which reached 50.9 per cent in the third quarter of 2019, it is
still more than 20 percentage points below that of men, which is 74.3 per cent.
In 2019, female unemployment rose 0.2 percentage points in the regional
average, to 10.2 per cent, while that of men remained unchanged at 7.3 per
cent. This indicates that the increase in regional unemployment
disproportionately affected women.
The situation of youth in the region is alarming. In the third quarter of 2019,
the regional unemployment rate was 19.8 per cent, which implies that one in
five young people in the labour force cannot find employment. This is the
highest level recorded of that rate in the last decade.
“The lack of decent work opportunities for young people causes great concern
because it is a source of discouragement and frustration. This has been
reflected in the front line of recent protests in the region, calling for
changes to aim for a better future,” said Mr Hunt.
Social demands and instability
The ILO
Regional Director also emphasized that recent demonstrations in the region by
citizens calling for better opportunities and greater equality are evidence of
the persistence of decent work deficits.
“Opportunities to access decent and productive employment, with fair wages,
social inclusion, social protection and labour rights, are key to responding to
social demands. They also ensure that the benefits of growth reach everyone and
guarantee good governance,” said Mr Hunt.
Speaking on the employment quality findings included in the report, Mr Hugo
Ñopo, the ILO Regional Economist who coordinated the Labour Overview, explained
that, “the dynamics of economic slowdown since mid-2018 have had an impact on
the structure and quality of jobs.”
Ñopo stressed that since 2018 there is a lower growth in salaried employment
compared to self-employment, especially non-professional employment. He also
emphasized that these are signs of “a relative instability of the jobs that are
being created in Latin America and the Caribbean.”
The report also states that there is a tendency to increase in the indicators
of under-occupation due to insufficient working time. The percentage of
employed people who work less than 35 hours and want to work more increased in
10 of the 11 countries with available data.
Referring to the economic slowdown experienced by the region in the last year,
Ñopo warned that “the impacts on the labour market are not yet fully
reflected”, due to the lag in the demand for employment.
The ILO specialist stated that the challenge for the countries of the region is
clear: “integrate the more than 25 million unemployed and give decent
employment to an even greater and diverse number of people who are hoping to
benefit economically.”