ECLAC and ILO: Labor Indicators Return to Pre-Pandemic Levels, Gender Gaps and Informality Persist

Employment Situation in Latin America and the Caribbean: Towards the Creation of Better Jobs in the Post-Pandemic Era

Introduction

The Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labour Organization (ILO) have jointly released their latest report on the employment situation in Latin America and the Caribbean. The report, titled “Employment Situation in Latin America and the Caribbean (No. 28): Towards the creation of better jobs in the post-pandemic era,” analyzes the evolution of labor markets in the region in 2022. This report emphasizes the importance of achieving the Sustainable Development Goals (SDGs) in the post-pandemic era.

Overview of Labor Market Recovery

The report highlights that three years after the COVID-19 crisis, the main labor indicators in Latin America and the Caribbean have returned to the values that prevailed in 2019. The improvement in variables such as the labor participation rate, the unemployment rate, and the number of employed persons began in 2021 and continued in 2022, although the growth in the number of employed persons was slower compared to 2021. It is important to note that the recovery has been uneven across the region, with some countries still struggling to reach their pre-pandemic levels. The report also emphasizes that the recovery has been stronger among women and young people compared to men and adults.

Gender and Age Gaps

Despite the overall improvement, significant gender and age gaps persist in terms of labor market participation and unemployment rates. The average labor productivity in the region declined in 2022, particularly in sectors such as industry, construction, and commerce. Additionally, real average wages stagnated in 2022, reflecting the impact of higher inflation.

Sustainable Job Creation

The report highlights that the progress observed in labor markets between 2020 and 2022 is a result of cyclical economic growth and is not sustainable in the long term. ECLAC projects regional economic growth of 1.2% for 2023, which will lead to less vigorous job creation. The increase in the number of employed persons is estimated to be under 2%, compared to the 5.9% growth experienced in 2022.

Addressing Structural Problems

The report emphasizes that simply returning to pre-pandemic levels is not enough, as the structural problems in the region’s labor markets still persist. Informal employment remains high, and despite improvements in 2022, significant gender gaps in participation and unemployment rates remain. Wages and productivity have also returned to their pre-pandemic trends, indicating stagnation at best.

Recommendations for Policy Action

To address these challenges, ECLAC and the ILO recommend that countries in the region implement active labor policies that promote greater job creation, increased formalization, and better inclusion of women and young people in the labor market. It is crucial to broaden and better coordinate labor policy instruments to avoid contractions in employment. Additionally, there should be a greater emphasis on economic reactivation by focusing on dynamic sectors that drive economic growth and employment.

In conclusion, the report highlights the need for sustained efforts to achieve the SDGs in the post-pandemic era. By implementing effective labor policies and addressing structural issues, Latin America and the Caribbean can create better jobs and promote inclusive and sustainable economic growth.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 5: Gender Equality
• SDG 10: Reduced Inequalities

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• SDG 5.1: End all forms of discrimination against all women and girls everywhere.
• SDG 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Labor participation rate
• Unemployment rate
• Number of employed persons
• Labor productivity
• Average wages
• Informal employment rate

The article discusses the labor participation rate, unemployment rate, and number of employed persons as indicators of progress in achieving full and productive employment and decent work (SDG 8.5). It also mentions significant gender gaps in participation and unemployment rates, indicating the need to address gender inequality (SDG 5.1). The article highlights the high rate of informal employment, pointing to the need to reduce inequalities (SDG 10.4).

4. Table: SDGs, Targets, and Indicators

The table summarizes the relevant SDGs, targets, and indicators identified in the article. It shows how the issues discussed in the article align with specific SDGs and their corresponding targets, as well as the indicators that can be used to measure progress towards those targets.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: miragenews.com

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.