ILO projects unemployment rate in Latin America of 6.3 % at the end of 2023

The International Labor Organization (ILO) has made its projections on the unemployment rate for Latin America at the end of this year, placing it at 6.3 %, with a range between 6.2 % and 6.4 %.”

In its 2023 Labor Outlook report for Latin America and the Caribbean, the organization also predicts that informality will increase in the labor sector.

After almost four years of the Covid-19 pandemic, “the region as a whole exhibits a full recovery in the employment and unemployment rate, although an insufficient recovery in the participation rate,” the report states.

When comparing the averages of the first three quarters of 2022 with those of 2023, “a reduction in the unemployment rate is observed from 7.4 % to 6.5 %, accompanied by an increase in the occupancy rate of 57.9 % to 58.2%. Meanwhile, the participation rate went from 62.5 % to 62.3 %.”

The ILO indicated in the document that the employment sector was completely recovered, and the labor supply was partially recovered. Likewise, the unemployment rate is lower than in 2019. However, nine of the 16 countries in the region maintain an employment rate below the level for 2019.

The ILO foresees an uneven recovery between urban and rural regions. For the latter, the organization proposes that formal job creation plans be maintained and expanded, given that the informality rate has continued to increase. In fact, “In mid-2023, the informality rate in Latin America was 48 %.”

Another aspect that the ILO focuses on is improving workers’ incomes in order to reduce poverty. Although employment levels have returned to those similar to 2019, salaries remain below, affecting the purchasing power of the population.

M.Pino

Source: americaeconomia

(Reference image source: Scott Blake, Unsplash)

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