ECLAC urges to reduce labor informality to face low productivity in LA
José Manuel Salazar-Xirinachs, executive secretary of the Economic Commission for Latin America and the Caribbean (Cepal), recommends reducing informality in Latin America to address low productivity
The executive secretary of the Economic Commission for Latin America and the Caribbean (Cepal), José Manuel Salazar-Xirinachs, has urged addressing the problem of labor informality in Latin America in order to improve the region’s productivity figures, which are “very low” compared to other geographical areas.
In a podcast of the International Labor Organization (ILO), Salazar has argued that there are no “magic solutions” to increase productivity, and it is necessary to focus on “structural” measures that entail a change in labor relations in Latin America.
Among the main obstacles to closing the gaps with developed countries, the Costa Rican has pointed out that there is a “serious problem” of human capital, caused by low levels of investment in training and education.
“You cannot participate in the productive paradigms of the 21st century without a modern workforce and without the skills demanded by today’s world, in which there is a clear commitment to digital transformation and technological advances,” he warned.
Latin America requires a new approach to the labor sector
Regarding the current situation in Latin America, Salazar has insisted that the business ecosystem, in which small and medium-sized companies mainly coexist, is marked by low productivity, although more and more companies are found to be “islands” of excellence, success and competitiveness. “However, they still represent a low representation within the economy of the countries of the region as a whole,” he lamented.
Thus, the ECLAC secretary has focused on the opportunities that the irruption of technology is generating in the region and has appealed to “bet” on new market niches in the services sector such as electromobility, the circular economy or the transition energetic.
“We must approach the issue of opportunities for productive development and rethink the industrialization of the service sector, as well as improve productivity in the public sector, which is inefficient,” he concluded.
Source: dpa
(Reference image source: ECLAC, Europa Press)
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