SANTIAGO – The economic slowdown in Latin America and the Caribbean will push urban unemployment in the region to 6.6 percent by the end of this year, compared with 6 percent in December 2014, according to a report by two UN agencies released on Tuesday.
The Economic Commission for Latin America and the Caribbean and the International Labor Organization presented the latest edition of their joint publication The Employment Situation in Latin America and the Caribbean.
The report says that an expected contraction of 0.3 percent in regional gross domestic product this year will result “in the persistent weakness of labor demand and salaried job creation.”
“Only with clear productive development policies will the region be capable of overcoming the adverse context that currently hinders its expansion and of creating more and better jobs for the productive insertion of its labor force,” ECLAC Executive Secretary Alicia Barcena and ILO regional chief Jose Manuel Salazar stated in the prologue.
Unemployment in Latin America and the Caribbean was 6.5 percent in January-June, compared with 6.2 percent during the same period of 2014.
The recessionary trend in the region hampers efforts to reduce poverty and inequality, the report said.
The report also compares labor performance in different types of companies, concluding that the positive evolution of labor markets between 2003 and 2013 included small and medium-sized firms as well as large corporations.