Lima: Unemployment in Latin America and the Caribbean saw a slight decline in 2024, but widening income inequality and persistent job insecurity remain critical concerns, according to a report released by the International Labour Organization (ILO) on Tuesday.
Employment Recovery vs. Job Quality Concerns
While the region has largely regained pre-pandemic employment levels, many workers continue to struggle with precarious contracts, unstable incomes, and economic vulnerability. Nearly half of the workforce remains in informal or insecure jobs, reinforcing economic disparities.
“The region has recovered pre-pandemic employment levels, but the outlook remains worrying: we are at the same point as 10 years ago,” said Ana Virginia Moreira, ILO’s Director for Latin America and the Caribbean. “Economic growth is slowing down, and structural deficiencies in job creation persist.”
Also Read | Drought and Bankruptcies Leave Canadian Farmers Struggling to Get Paid
Key Employment Figures
- The regional unemployment rate closed at 6.1% in 2024, down from 6.5% in 2023.
- The employment rate increased by 0.5 percentage points, reaching 58.9% in 2024.
- Female employment stood at 52.1%, significantly lower than the male employment rate of 74.3%.
- Women continued to face a 20% wage gap compared to men.
- Informal labor remained widespread, affecting 47.6% of the workforce.
Also Read | US Tariffs on Canadian Steel and Aluminum Will Cost American Jobs, Says Trudeau
Outlook for 2025
The ILO projects that the unemployment rate will remain between 5.8% and 6.2% in 2025, with economic growth expected to be moderate. The organization has urged policymakers to implement structural reforms aimed at increasing job formalization and addressing deep-seated employment disparities.
