Latin America: what is the current state of employment?

These are the Latin American countries with the highest and lowest unemployment rate

Latin America: what is the current state of employment?

In May of this year, the International Labor Organization (ILO) pointed out that by 2016 the current rate of labor growth had increased by only 3%, which has weakened the labor market so far this year and subtract from it. Without an increase, for now, it is expected that in 2018 the figures will continue this way or fall and unemployment will increase more particularly in Latin America.

As reported by CNN, the countries that have had the highest unemployment so far this year are: Jamaica with 13 points above the other countries, followed by the Bahamas with 12 and Brazil is in third place with 11 points up.

Read also: Chilean women work presence yet to come

The countries that have maintained the unemployment rate since 2016 are: Venezuela, Paraguay, Uruguay, Chile, Ecuador, Honduras and the Dominican Republic, these countries are between 8 and 5 unemployment points. Despite having maintained the figures, in the remainder of the year these could increase significantly.

The countries with the lowest unemployment rate are Mexico, Guatemala, Peru, Bolivia, Trinidad and Tobago, and perhaps Ecuador and Panama, within the range of between 4 and 5 percentage points to the figures of the other countries.

This means that the economic growth of these countries and the increase in employment has only risen by 1.1% according to data from the Reuters agency in which they point out that it is for this same reason that countries can not recover economically, at par of unemployment there is poverty, hopelessness, and human capital decreases.

Information from different sources indicates that the Millennial generation is the culprit in these results. However, the ILO asserts that it is not just about this, but also about the bad use of labor reforms that should support the worker. For example, in Mexico the labor reform removed all seniority rights in a job for those who are just starting in a company or formal employment, as well as other benefits that improved the capital and the quality of life of the worker.

Read also: Unemployment and informal work explain the Latin American situation

In Venezuela and Colombia, labor reforms were also implemented, but instead of helping the workers' situation, they force people to decide what suited them best, the right of seniority, or work for outsourcing or freelance. These jobs lack a guarantee of growth, there is no formal contract, and if you decide to work elsewhere, even if you have worked 3 or 4 years of your life in that place, there is no guarantee that you can keep your job. Part of the factors that do not allow the unemployment figures to stop increasing are jobs like these, with lack of legislation that protects the rights of workers. The ILO has left clear that the way to reduce unemployment is to create better labor laws, but so far this has not been done by the majority of Latin American countries.

 

Latin American Post | Cristina Torres

Copy edited by Laura Rocha Rueda

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