The ILO explains that employment in Latin America and the Caribbean will face a slowdown scenario during the years 2023 and 2024, which will only increase at a rate of 1% and 1.5%, respectively, mainly caused by a reduction in the growth rate of the Gross Domestic Product (GDP) of the region, which will hinder the creation of new jobs.

In this line, ILO points out that employment increases will be "moderate" and will be "in line" with the increase in the active population. Therefore, the employed population rate will remain close to 58% in 2022. This figure is a "considerable" improvement over the 2020 low of 53.1%, but is still below pre-pandemic levels of 58.5% in 2019.

Behind this weakening of labor muscle in Latin America is the fall in external demand, which is affecting the expectations of the region, which sees how inflation is maintained and GDP growth slows.

The ILO warns in its report that there is a "growing" risk of an increase in informal employment in the region, with adverse effects to a greater extent among women and young people.

According to the data, the trend has been downward in recent years. However, a number of factors could lead to this increase in informality, such as the elimination or weakening of policies to support and create formal jobs.

Translated by: A.M