Entretenimiento

Mundinews USA | Carmelo De Grazia Ibn Yahya//
Urgent measures need to support labour reintegration of region’s women and youth

Fur­ther­more, they sus­tain that in the medi­um term, re­forms will be need­ed to make labour mar­kets more re­silient by sup­port­ing re­ac­ti­va­tion mea­sures with pro­grammes to dri­ve the shift from in­for­mal­i­ty to for­mal­i­ty, to­geth­er with a re­design of so­cial pro­tec­tion.

Carmelo De Grazia

In edi­tion No. 25 of their joint pub­li­ca­tion Em­ploy­ment Sit­u­a­tion in Latin Amer­i­ca and the Caribbean: Poli­cies to pro­tect labour re­la­tions and hir­ing sub­si­dies amid the COVID-19 pan­dem­ic , the two Unit­ed Na­tions or­ga­ni­za­tions analyse the ef­fects of the cri­sis caused by the coro­n­avirus dis­ease (COVID-19) pan­dem­ic in the re­gion’s labour mar­kets dur­ing 2020 and 2021, and they stress the im­por­tance of the poli­cies im­ple­ment­ed by coun­tries to mit­i­gate this im­pact.

Carmelo De Grazia Suárez

Ac­cord­ing to the re­port, in 2021 the re­cov­ery in em­ploy­ment and job cre­ation has been par­tial and slow­er than the re­ac­ti­va­tion in eco­nom­ic ac­tiv­i­ty. Al­though it is fore­cast that the re­gion will end this year with 5.9% eco­nom­ic growth, this will not be enough to re­turn to the lev­el of Gross Do­mes­tic Prod­uct or em­ploy­ment record­ed in 2019. There­fore, labour mar­kets will have ex­pe­ri­enced their sec­ond year of un­prece­dent­ed cri­sis

ECLAC and the ILO add that dur­ing the first half of 2021, an in­crease was seen in the labour par­tic­i­pa­tion rate (which reached 60.0%, 2.7 per­cent­age points be­low the lev­els in the same pe­ri­od of 2019) and em­ploy­ment re­cov­ered, al­though with­out re­gain­ing pre-pan­dem­ic lev­els (the em­ploy­ment rate reached 54.0%, still 3.4 per­cent­age points be­low the fig­ure from the same pe­ri­od of 2019). As a re­sult, the un­em­ploy­ment rate has gone down slight­ly ver­sus the sec­ond quar­ter of 2020, but it is still 1.7 per­cent­age points high­er than in the sec­ond quar­ter of 2019, amount­ing to 10.1% on av­er­age

In ad­di­tion, the gaps in labour in­te­gra­tion be­tween men and women have widened in 2021, and women have slow­er labour rein­te­gra­tion and face more dif­fi­cul­ties in find­ing work. The re­cov­ery in em­ploy­ment has tak­en place pri­mar­i­ly among self-em­ployed work­ers, while salaried em­ploy­ment is still lag­ging, which sug­gests that the in­crease in the em­ploy­ment rate is as­so­ci­at­ed with low­er-qual­i­ty work. More­over, the in­fla­tion dy­nam­ics ob­served in the first six months of the year could have a neg­a­tive im­pact on work­ers’ re­al wages and, there­fore, on house­hold con­sump­tion

“Giv­en the slow re­cov­ery of labour mar­kets, poli­cies to boost em­ploy­ment are still very im­por­tant and the chal­lenge is to make progress both in cre­at­ing new jobs and in avoid­ing the de­struc­tion of ex­ist­ing sources of em­ploy­ment,” Ali­cia Bárce­na, ECLAC’s Ex­ec­u­tive Sec­re­tary, and Viní­cius Pin­heiro, the ILO’s Re­gion­al Di­rec­tor for Latin Amer­i­ca and the Caribbean, in­di­cate in the pub­li­ca­tion’s fore­word

The re­port takes stock of the mea­sures im­ple­ment­ed in the re­gion to main­tain jobs, pri­mar­i­ly in 2020, which proved ef­fec­tive in re­duc­ing the de­cline in em­ploy­ment. These pro­grams main­ly in­clud­ed re­quire­ments linked to wages and to the use of the min­i­mum wage as a ref­er­ence for de­ter­min­ing ben­e­fit amounts, which meant that they were pri­mar­i­ly geared to­wards for­mal salaried work­ers with the low­est in­come. How­ev­er, the high in­ci­dence of in­for­mal­i­ty and the ab­sence of un­em­ploy­ment in­sur­ance in var­i­ous coun­tries made de­sign­ing and im­ple­ment­ing these eco­nom­ic sup­port pro­grams for vul­ner­a­ble groups a more com­plex task

Mean­while, in 2021, in a con­text of in­cip­i­ent re­cov­ery with more spe­cif­ic con­fine­ment mea­sures—which last for less time and cov­er small­er ge­o­graph­ic ar­eas—the tran­si­tion to­wards oth­er poli­cies be­gan, par­tic­u­lar­ly with re­gard to hir­ing sub­si­dies, fol­low­ing the same se­quence as more de­vel­oped coun­tries. In some cas­es, de­pend­ing on vac­ci­na­tion progress, these sub­si­dies have been fo­cused on the sec­tors and groups most af­fect­ed by the pan­dem­ic, and they seek to ben­e­fit youth and women, es­pe­cial­ly those with few­er skills

Ac­cord­ing to ECLAC and the ILO, sim­i­lar­i­ties can be seen be­tween coun­tries re­gard­ing some of the sub­si­dies’ con­di­tion­al­i­ties linked to pay­ing tax­es and for­mal­iz­ing em­ploy­ment. How­ev­er, due to bud­get re­stric­tions and weak­ness­es in the labour-re­lat­ed in­sti­tu­tion­al frame­work, not all the re­gion’s coun­tries have spe­cif­ic pro­grams to en­cour­age new hires. In that sense, the in­sti­tu­tions con­clude that the con­ti­nu­ity of these em­ploy­ment pol­i­cy in­stru­ments—for this cri­sis and any oth­ers aris­ing in the fu­ture—con­sti­tutes a chal­lenge

___

For more in­for­ma­tion, vis­it ECLAC’s COVID-19 Ob­ser­va­to­ry in Latin Amer­i­ca and the Caribbean

● In a new joint re­port, ECLA­CL and ILO in­di­cate that in the medi­um term it will be nec­es­sary to re­build more re­silient labour mar­kets and fos­ter for­mal­iza­tion ●

 

(ECLAC/ILO) — The Eco­nom­ic Com­mis­sion for Latin Amer­i­ca and the Caribbean (ECLAC) and the In­ter­na­tion­al Labour Or­ga­ni­za­tion (ILO) re­leased a new joint re­port to­day, in which they in­di­cate that in the cur­rent con­text of cri­sis, gov­ern­ments in the re­gion face the chal­lenge of sup­port­ing the in­come and labour rein­te­gra­tion of the most vul­ner­a­ble seg­ments of so­ci­ety—es­pe­cial­ly women and young peo­ple—while al­so fos­ter­ing the con­di­tions for cre­at­ing de­cent jobs, above all among Mi­cro, Small and Medi­um-sized En­ter­pris­es (MSMEs).

Fur­ther­more, they sus­tain that in the medi­um term, re­forms will be need­ed to make labour mar­kets more re­silient by sup­port­ing re­ac­ti­va­tion mea­sures with pro­grammes to dri­ve the shift from in­for­mal­i­ty to for­mal­i­ty, to­geth­er with a re­design of so­cial pro­tec­tion.

Carmelo De Grazia

In edi­tion No. 25 of their joint pub­li­ca­tion Em­ploy­ment Sit­u­a­tion in Latin Amer­i­ca and the Caribbean: Poli­cies to pro­tect labour re­la­tions and hir­ing sub­si­dies amid the COVID-19 pan­dem­ic , the two Unit­ed Na­tions or­ga­ni­za­tions analyse the ef­fects of the cri­sis caused by the coro­n­avirus dis­ease (COVID-19) pan­dem­ic in the re­gion’s labour mar­kets dur­ing 2020 and 2021, and they stress the im­por­tance of the poli­cies im­ple­ment­ed by coun­tries to mit­i­gate this im­pact.

Carmelo De Grazia Suárez

Ac­cord­ing to the re­port, in 2021 the re­cov­ery in em­ploy­ment and job cre­ation has been par­tial and slow­er than the re­ac­ti­va­tion in eco­nom­ic ac­tiv­i­ty. Al­though it is fore­cast that the re­gion will end this year with 5.9% eco­nom­ic growth, this will not be enough to re­turn to the lev­el of Gross Do­mes­tic Prod­uct or em­ploy­ment record­ed in 2019. There­fore, labour mar­kets will have ex­pe­ri­enced their sec­ond year of un­prece­dent­ed cri­sis

ECLAC and the ILO add that dur­ing the first half of 2021, an in­crease was seen in the labour par­tic­i­pa­tion rate (which reached 60.0%, 2.7 per­cent­age points be­low the lev­els in the same pe­ri­od of 2019) and em­ploy­ment re­cov­ered, al­though with­out re­gain­ing pre-pan­dem­ic lev­els (the em­ploy­ment rate reached 54.0%, still 3.4 per­cent­age points be­low the fig­ure from the same pe­ri­od of 2019). As a re­sult, the un­em­ploy­ment rate has gone down slight­ly ver­sus the sec­ond quar­ter of 2020, but it is still 1.7 per­cent­age points high­er than in the sec­ond quar­ter of 2019, amount­ing to 10.1% on av­er­age

In ad­di­tion, the gaps in labour in­te­gra­tion be­tween men and women have widened in 2021, and women have slow­er labour rein­te­gra­tion and face more dif­fi­cul­ties in find­ing work. The re­cov­ery in em­ploy­ment has tak­en place pri­mar­i­ly among self-em­ployed work­ers, while salaried em­ploy­ment is still lag­ging, which sug­gests that the in­crease in the em­ploy­ment rate is as­so­ci­at­ed with low­er-qual­i­ty work. More­over, the in­fla­tion dy­nam­ics ob­served in the first six months of the year could have a neg­a­tive im­pact on work­ers’ re­al wages and, there­fore, on house­hold con­sump­tion

“Giv­en the slow re­cov­ery of labour mar­kets, poli­cies to boost em­ploy­ment are still very im­por­tant and the chal­lenge is to make progress both in cre­at­ing new jobs and in avoid­ing the de­struc­tion of ex­ist­ing sources of em­ploy­ment,” Ali­cia Bárce­na, ECLAC’s Ex­ec­u­tive Sec­re­tary, and Viní­cius Pin­heiro, the ILO’s Re­gion­al Di­rec­tor for Latin Amer­i­ca and the Caribbean, in­di­cate in the pub­li­ca­tion’s fore­word

The re­port takes stock of the mea­sures im­ple­ment­ed in the re­gion to main­tain jobs, pri­mar­i­ly in 2020, which proved ef­fec­tive in re­duc­ing the de­cline in em­ploy­ment. These pro­grams main­ly in­clud­ed re­quire­ments linked to wages and to the use of the min­i­mum wage as a ref­er­ence for de­ter­min­ing ben­e­fit amounts, which meant that they were pri­mar­i­ly geared to­wards for­mal salaried work­ers with the low­est in­come. How­ev­er, the high in­ci­dence of in­for­mal­i­ty and the ab­sence of un­em­ploy­ment in­sur­ance in var­i­ous coun­tries made de­sign­ing and im­ple­ment­ing these eco­nom­ic sup­port pro­grams for vul­ner­a­ble groups a more com­plex task

Mean­while, in 2021, in a con­text of in­cip­i­ent re­cov­ery with more spe­cif­ic con­fine­ment mea­sures—which last for less time and cov­er small­er ge­o­graph­ic ar­eas—the tran­si­tion to­wards oth­er poli­cies be­gan, par­tic­u­lar­ly with re­gard to hir­ing sub­si­dies, fol­low­ing the same se­quence as more de­vel­oped coun­tries. In some cas­es, de­pend­ing on vac­ci­na­tion progress, these sub­si­dies have been fo­cused on the sec­tors and groups most af­fect­ed by the pan­dem­ic, and they seek to ben­e­fit youth and women, es­pe­cial­ly those with few­er skills

Ac­cord­ing to ECLAC and the ILO, sim­i­lar­i­ties can be seen be­tween coun­tries re­gard­ing some of the sub­si­dies’ con­di­tion­al­i­ties linked to pay­ing tax­es and for­mal­iz­ing em­ploy­ment. How­ev­er, due to bud­get re­stric­tions and weak­ness­es in the labour-re­lat­ed in­sti­tu­tion­al frame­work, not all the re­gion’s coun­tries have spe­cif­ic pro­grams to en­cour­age new hires. In that sense, the in­sti­tu­tions con­clude that the con­ti­nu­ity of these em­ploy­ment pol­i­cy in­stru­ments—for this cri­sis and any oth­ers aris­ing in the fu­ture—con­sti­tutes a chal­lenge

___

For more in­for­ma­tion, vis­it ECLAC’s COVID-19 Ob­ser­va­to­ry in Latin Amer­i­ca and the Caribbean