The International Labor Organization (ILO) has warned that 28 million Latin Americans are in a situation of in-work poverty after the pandemic has passed, leaving the region with an unemployment rate of 11.1% this year.
According to a new report from the agency, five million people fell into working poverty in 2020 as a result of the epidemic. Almost 30 million Latin Americans, 9 of whom live in extreme poverty, have jobs but do not earn enough to stay above the poverty line with their families.
Latin America and the Caribbean saw the largest drop in hours worked in 2020, when the equivalent of more than 30 million jobs were lost due to both exits and reductions in hours worked.
The text suggests that although the region saw a solid recovery in the first half of 2021, with the percentage of hours lost from 30% to 11%, Latin America is still the hardest hit region of the world today World is.
The ILO Director for Latin America and the Caribbean, Vinícius Pinheiro, has underlined the need to take exceptional measures to rebuild labor markets in the Covid-19 region.
“Employment must be at the center of economic recovery,” says Pinheiro, who adds that the lack of employment in the recovery processes can increase social unrest and affect political stability in Latin America.
The institution has highlighted that the regional unemployment rate of 8% in 2019 and 10.3% in 2020 would reach 11.1% in 2021, which would mean a total of 34 million people are looking for a job without getting it . In 2022, the rate is projected to drop to 8.9%, although there is a high level of uncertainty that also affects the data estimates.
The ILO states that massive deviations in labor force participation have been a feature of this crisis and that the return of these people as economic activity revives could put pressure on unemployment rates.
The data in this report assumes that 23 million people will have left the labor force at the worst in 2020. An estimated 17 million people have returned to the labor market in 2021, although it has not yet reached pre-pandemic levels.
The text warned of the possibility of slow recovery in employment in the region, particularly in formal employment, which could have an impact on increasing informality.