Connect with us

Reports

Latin America and the Caribbean experience slight increase in unemployment

Published

on

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.”

Continue Reading
Comments

Reports

Post-COVID-19, regaining citizen’s trust should be a priority for governments

Published

on

coronavirus people

The COVID-19 crisis has demonstrated governments’ ability to respond to a major global crisis with extraordinary flexibility, innovation and determination. However, emerging evidence suggests that much more could have been done in advance to bolster resilience and many actions may have undermined trust and transparency between governments and their citizens, according to a new OECD report.

Government at a Glance 2021 says that one of the biggest lessons of the pandemic is that governments will need to respond to future crises at speed and scale while safeguarding trust and transparency. “Looking forward, we must focus simultaneously on promoting the economic recovery and avoiding democratic decline” said OECD Director of Public Governance Elsa Pilichowski. “Reinforcing democracy should be one of our highest priorities.”

 Countries have introduced thousands of emergency regulations, often on a fast track. Some alleviation of standards is inevitable in an emergency, but must be limited in scope and time to avoid damaging citizen perceptions of the competence, openness, transparency, and fairness of government.

 Governments should step up their efforts in three areas to boost trust and transparency and reinforce democracy:

 Tackling misinformation is key. Even with a boost in trust in government sparked by the pandemic in 2020, on average only 51% of people in OECD countries for which data is available trusted their government. There is a risk that some people and groups may be dissociating themselves from traditional democratic processes.

 It is crucial to enhance representation and participation in a fair and transparent manner. Governments must seek to promote inclusion and diversity, support the representation of young people, women and other under-represented groups in public life and policy consultation. Fine-tuning consultation and engagement practices could improve transparency and trust in public institutions, says the report. Governments must also level the playing field in lobbying. Less than half of countries have transparency requirements covering most of the actors that regularly engage in lobbying.

 Strengthening governance must be prioritised to tackle global challenges while harnessing the potential of new technologies. In 2018, only half of OECD countries had a specific government institution tasked with identifying novel, unforeseen or complex crises. To be fit for the future, and secure the foundations of democracy, governments must be ready to act at speed and scale while safeguarding trust and transparency.

 Governments must also learn to spend better, according to Government at a Glance 2021. OECD countries are providing large amounts of support to citizens and businesses during this crisis: measures ongoing or announced as of March 2021 represented, roughly, 16.4% of GDP in additional spending or foregone revenues, and up to 10.5% of GDP via other means. Governments will need to review public spending to increase efficiency, ensure that spending priorities match people’s needs, and improve the quality of public services.

Continue Reading

Reports

Sweden: Invest in skills and the digital economy to bolster the recovery from COVID-19

Published

on

Sweden’s economy is on the road to recovery from the shock of the COVID-19 crisis, yet risks remain. Moving ahead with a labour reform to facilitate adaptation in a fast-changing economic environment, and investing in digital skills and infrastructure, will be crucial to revive employment and build a sustainable recovery, according to the latest OECD Economic Survey of Sweden.

The pandemic triggered a severe recession in Sweden, despite mild distancing measures and swift government action to protect people and businesses. GDP fell by less than in many other European economies in 2020, thanks to reinforced short-time work, compensation to firms for lost revenue and measures to prop up the financial system, but unemployment still rose sharply. Solid public finances provided room for further stimulus in 2021 to buttress the recovery.

 The Survey recommends maintaining targeted support to people and firms until the pandemic subsides, then focusing on strengthening vocational training and skills and increasing investment in areas like high-speed internet and low-carbon transport. Addressing regional inequality, which is low but rising, should also be a priority as the recovery takes hold.

 The Survey shows that Sweden has been among the most resilient OECD countries in the face of a historic shock. Yet, like other economies, it faces challenges from demographic changes and the shift to green, digital economies. Investments in education and training, and labour reforms along the lines negotiated by the social partners, will support job creation and strengthen economic resilience. Building on Sweden’s leadership in digital innovation and diffusion will also be key for driving productivity.

 After a 3% contraction in 2020, interrupting several years of growth, the Survey projects a rebound in activity with 3.9% growth in 2021 and 3.4% in 2022 as industrial production resumes and exports recover. The recovery in world trade is bolstering the Swedish economy, however the country remains vulnerable to potential disruptions in global value chains.  

The pandemic has aggravated a mismatch in Sweden’s job market, with unfilled vacancies for highly qualified workers coinciding with high unemployment for low-skilled workers and immigrants. The public employment service needs strengthening to provide better support to jobseekers, including immigrants and women, and labour policies should strike the right balance between supporting businesses and workers and supporting transitions away from declining businesses towards growing sectors.

A rising share of youths and older people in the population, especially in remote areas, is affecting the finances of local governments, which provide the bulk of welfare services. Strengthening local government budgets and ensuring equal welfare provision across the country will require providing tax income to poorer regions more efficiently and raising the economic growth potential across regions through investments in innovation. Improving coordination between government entities and reinforcing the role of universities in local economic networks would help achieve that aim.

Continue Reading

Reports

Fewer women than men will regain work during COVID-19 recovery

Published

on

Generations of progress stands to be lost on women and girls' empowerment during the COVID-19 pandemic. Photo: ILO

Fewer women will regain jobs lost to the COVID-19 pandemic during the recovery period, than men, according to a new study released on Monday by the UN’s labour agency.  

In Building Forward Fairer: Women’s rights to work and at work at the core of the COVID-19 recovery, the International Labour Organization (ILO) highlights that between 2019 and 2020, women’s employment declined by 4.2 per cent globally, representing 54 million jobs, while men suffered a three per cent decline, or 60 million jobs. 

This means that there will be 13 million fewer women in employment this year compared to 2019, but the number of men in work will likely recover to levels seen two years ago. 

This means that only 43 per cent of the world’s working-age women will be employed in 2021, compared to 69 per cent of their male counterparts. 

The ILO paper suggests that women have seen disproportionate job and income losses because they are over-represented in the sectors hit hardest by lockdowns, such as accommodation, food services and manufacturing. 

Regional differences 

Not all regions have been affected in the same way. For example, the study revealed that women’s employment was hit hardest in the Americas, falling by more than nine per cent.  

This was followed by the Arab States at just over four per cent, then Asia-Pacific at 3.8 per cent, Europe at 2.5 per cent and Central Asia at 1.9 per cent. 

In Africa, men’s employment dropped by just 0.1 per cent between 2019 and 2020, while women’s employment decreased by 1.9 per cent. 

Mitigation efforts 

Throughout the pandemic, women faired considerably better in countries that took measures to prevent them from losing their jobs and allowed them to get back into the workforce as early as possible. 

In Chile and Colombia, for example, wage subsidies were applied to new hires, with higher subsidy rates for women.  

And Colombia and Senegal were among those nations which created or strengthened support for women entrepreneurs.  

Meanwhile, in Mexico and Kenya quotas were established to guarantee that women benefited from public employment programmes. 

Building forward 

To address these imbalances, gender-responsive strategies must be at the core of recovery efforts, says the agency. 

It is essential to invest in the care economy because the health, social work and education sectors are important job generators, especially for women, according to ILO. 

Moreover, care leave policies and flexible working arrangements can also encourage a more even division of work at home between women and men. 

The current gender gap can also be tackled by working towards universal access to comprehensive, adequate and sustainable social protection. 

Promoting equal pay for work of equal value is also a potentially decisive and important step. 

Domestic violence and work-related gender-based violence and harassment has worsened during the pandemic – further undermining women’s ability to be in the workforce – and the report highlights the need to eliminate the scourge immediately. 

Promoting women’s participation in decision-making bodies, and more effective social dialogue, would also make a major difference, said ILO. 

Continue Reading

Publications

Latest

Travel & Leisure5 hours ago

Four Seasons Hotel Mexico City Reveals Five of the City’s Hidden Gems

The Concierge team at Four Seasons Hotel Mexico City, members of the Les Clefs d’Or international association, invites you to...

East Asia7 hours ago

Will US-China Tensions Trigger the Fourth Taiwan Strait Crisis?

Half a century ago, the then-National Security Advisor Henry Kissinger flew to Beijing in the hope of seeking China’s alliance...

South Asia9 hours ago

The Indo-US bonhomie: A challenge to China in the IOR

The oceans have long been recognized as one of the world’s valuable natural resources, and our well-being is tied to...

Uncategorized11 hours ago

The day France fustigated Big Tech: How Google ended up in the crosshair and what will follow

At the beginning of April 2019, the European Parliament approved the EU’s unified regulation on copyright and related rights. Since...

Middle East13 hours ago

Politics by Other Means: A Case Study of the 1991 Gulf War

War has been around since the dawn of man and is spawned by innate human characteristics. Often, when efforts at...

Economy15 hours ago

The Monetary Policy of Pakistan: SBP Maintains the Policy Rate

The State Bank of Pakistan (SBP) announced its bi-monthly monetary policy yesterday, 27th July 2021. Pakistan’s Central bank retained the...

Intelligence17 hours ago

China and Russia’s infiltration of the American Jewish and Israeli lobbies

 – First: The reasons for the registration of (Communist Lobbyists in the Middle East in the United States of America)...

Trending