Employment in Latin America to Grow Only 0.9%, According to ILO Report
ILO warns of a sharp slowdown after regional employment growth in Latin America
After regional employment growth of 6.4% in 2021 and 4.9% in 2022, the International Labour Organisation (ILO) warned of a sharp economic slowdown in Latin American countries in their Global Labour Market Outlook report.
The report forecasts the unemployment rate of the region to remain unchanged at 7%, even lower than the figures before the pandemic (8% in 2019), and after that in 2020, 10.2%.
The report also predicts a drop from 315 million people employed in 2022 to 317.9 million in 2023 and 322.5 million in 2024, with the percentage of employment in the male active population to remain at 70% (183 million) and the female at 46.5% (132 million).
The ILO furthermore highlights the increase in global inequality, noting the disproportionately greaterimpact of the crisis on women and the young. Additionally, it predicts a slight increase in global unemployment this year, of around three million people, to reach 208 million people (5.8% unemployment rate).
The ILO report also identifies increased informality and declining wages due to inflation as issues that must be addressed in the region. To combat this, the report calls for “clear increase in investment in education and training” to provide basic skills, noting that two thirds of active youth lack the same.
Richard Samans, director of the report stated that “the slower pace of global employment means that the losses incurred during the COVID-19 crisis are unlikely to be offset before 2025.”