ECLAC and ILO foresee a rise in unemployment in Latin America this year

27 October 2015

The Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labor Organization (ILO) foresee an increase in unemployment in the region during this year, as a consequence of the economic slowdown that is taking place.

In a report released today they estimate that the urban unemployment rate will reach 6.6 percent, compared with 6% the previous year.

ECLAC expects economic activity to contract by 0.3 percent in 2015, which will have repercussions in a persistent weakness in labor demand and in less generation of salaried employment.

ECLAC and the ILO have found that the employment rate decreased during the first half of this year compared to 2014 and the unemployment rate averaged 6.5%, compared to 6.2% in the first six months 2014.

Considering the current macroeconomic and labor context, it is expected that in many countries more informal jobs will emerge, especially self-employed, to compensate for the lack of opportunities and productive and quality employment.

The unfavorable outlook is expected to also affect efforts to reduce poverty and inequality in the region, two issues on which notable progress has been made in the past decade.

ECLAC and the ILO point out that, in the current economic context, micro-enterprises could once again play, together with self-employment, an important role in terms of generating employment, although they emphasize that measures must be taken to prevent jobs are of low productivity and quality.

For this, it is necessary to promote a greater incorporation of technology into small and medium businesses, access to adequate financing, greater innovation and access to markets and have a more qualified workforce.

27 October 2015

The Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labor Organization (ILO) foresee an increase in unemployment in the region during this year, as a consequence of the economic slowdown that is taking place.

In a report released today they estimate that the urban unemployment rate will reach 6.6 percent, compared with 6% the previous year.

ECLAC expects economic activity to contract by 0.3 percent in 2015, which will have repercussions in a persistent weakness in labor demand and in less generation of salaried employment.

ECLAC and the ILO have found that the employment rate decreased during the first half of this year compared to 2014 and the unemployment rate averaged 6.5%, compared to 6.2% in the first six months 2014.

Considering the current macroeconomic and labor context, it is expected that in many countries more informal jobs will emerge, especially self-employed, to compensate for the lack of opportunities and productive and quality employment.

The unfavorable outlook is expected to also affect efforts to reduce poverty and inequality in the region, two issues on which notable progress has been made in the past decade.

ECLAC and the ILO point out that, in the current economic context, micro-enterprises could once again play, together with self-employment, an important role in terms of generating employment, although they emphasize that measures must be taken to prevent jobs are of low productivity and quality.

For this, it is necessary to promote a greater incorporation of technology into small and medium businesses, access to adequate financing, greater innovation and access to markets and have a more qualified workforce.