Report of the seminar on Caribbean development thinking the path covered and the way forward

The Economic Commission for Latin America and the Caribbean (ECLAC), Subregional Headquarters for the Caribbean, and secretariat of the Caribbean Development and Cooperation Committee (CDCC) convened a Seminar on Caribbean Development Thinking: The Path Covered and the Way Forward, in Port of Spain on 21 October 2009. The meeting was attended by representatives of the following CDCC member countries: Dominica, Grenada, Guyana, Jamaica, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname and Trinidad and Tobago. Representatives of the following organizations of the United Nations system also attended: the International Labour Organisation (ILO); Joint United Nations Project on HIV/AIDS (UNAIDS); and the United Nations Development Programme (UNDP). The following intergovernmental organizations were represented: the Caribbean Community (CARICOM); the Caribbean Development Bank (CDB); the Caribbean Regional Negotiating Mechanism/Caribbean Community (CRNM/CARICOM); Delegation of the European Commission in Trinidad and Tobago; the Organisation of American States (OAS); and the Organisation of Eastern Caribbean States (OECS). The University of the West Indies (UWI) also participated. The list of participants appears as annex I to this report.

Evaluation report: regional workshop on informal sector surveys in the Caribbean's subregion

The Economic Commission for Latin America and the Caribbean (ECLAC) with support from the International Labour Organisation (ILO) and the Central Statistical Office in Saint Lucia convened a two-day Regional Workshop on Informal Sector Surveys for the Caribbean Subregion from 12 – 13 October 2009 in Castries, Saint Lucia. This workshop was one of the culminating activities of the United Nations Statistical Division-commissioned project Measurement of the Informal Sector and Informal Employment being conducted in the subregion since 2007. It was aimed primarily at disseminating the results of a 1-2 survey of the informal sector which was carried out in Saint Lucia over the period April 2008 to January 2009.

Regional workshop on informal sector surveys in the Caribbean subregion

The Economic Commission for Latin America and the Caribbean (ECLAC), Subregional Headquarters for the Caribbean, with support from the International Labour Organisation (ILO) and the Central Statistics Office in Saint Lucia, convened a two-day Data Dissemination Workshop on the Informal Sector and Informal Employment on 12 -13 October 2009 in Castries, Saint Lucia. This workshop was one of the culminating activities of the Interregional Project on the Measurement of the Informal Sector and Informal Employment being conducted in the Caribbean subregion. The workshop served as a forum for presenting the findings of the survey of the informal sector which was carried out in Saint Lucia over the period April 2008 to January 2009.

The employment situation in Latin America and the Caribbean: Employment formalization and labour income distribution

The employment situation in Latin America and the Caribbean is a twice-yearly report prepared jointly by the Economic Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC) and the Subregional Office for the South Cone of Latin America of the International Labour Organization (ILO). Strong job creation and wage gains have proved to be a key factors in reducing poverty —quite substantially— in our region over the past decade. Together with the implementation of innovative social policies, the narrowing of wage gaps has played a fundamental role in reducing inequality between households. The success of these two processes —reducing poverty and inequality— count among the most important achievements of this period. In the past few years, however, the fight against poverty has noticeably lost momentum,1 showing the extent to which job creation has been hit by the recent economic slowdown.

The employment situation in Latin America and the Caribbean: Labour productivity and distribution issues

Although the economies of Latin America and the Caribbean grew more slowly in 2011 than in 2010, there were some improvements on the employment front. Workers benefited from the region’s satisfactory economic performance in an increasingly complex international setting. The unemployment rate fell from 7.3% in 2010 to 6.7% in 2011 thanks to a halfpercentage- point gain in the urban employment rate. Both rates are at levels that have not been seen for a long time. The proportion of formal jobs with social benefits rose as well, and underemployment declined. The average wage and the minimum wage both increased in real terms, albeit only moderately. Economic performance and the employment situation varied widely among the subregions. The unemployment rate dropped by 0.6 percentage points in South America but 0.4 percentage points in the countries of the northern part of Latin America. In the countries of the Caribbean, the employment rate was up by 0.2 percentage points. The data show that substantial labour market gaps and serious labour-market insertion issues remain. This is especially the case for women and young people, for whom unemployment rates and other labour indicators are still unfavourable. The second part of this report looks at whether the fruits of economic growth and rising productivity have been distributed equitably between workers and companies. Between 2002 and 2008 (the most recent expansionary economic cycle), wages as a percentage of GDP fell in 13 of the 21 countries of the region for which data are available and rose in just 8. This points to redistribution that is unfavourable to workers, which is worrying in a region which already has the most unequal distribution of income in the world. Underlying this trend is the fact that, worldwide, wages have grown less than productivity. Beyond the ethical dimension of this issue, it jeopardizes the social and economic sustainability of growth. For example, one of the root causes of the recent financial crisis was that households in the United States responded to declining wage income by borrowing more to pay for consumption and housing. This turned out to be unsustainable in the long run. Over time, it undermines the labour market’s contribution to the efficient allocation of resources and its distributive function, too, with negative consequences for democratic governance. Among the triggers of this distributive worsening most often cited in the global debate are market deregulation and its impact on financial globalization, technological change that favours capital over labour, and the weakening of labour institutions. What is needed here is a public policy effort to help keep wage increases from lagging behind increases in productivity. Some countries of the region, especially in South America, saw promising developments during the second half of the 2000s in the form of a positive trend reversal in wages as a percentage of GDP. One example is Brazil, where a minimum wage policy tailored to the dynamics of the domestic market is considered to be one of the factors behind an upturn in the wage share of GDP. The region needs to grow more and better. Productivity must grow at a steady pace, to serve as the basis for sustained improvements in the well-being of the populace and to narrow the gap between the economies of Latin America and the Caribbean and the more advanced economies. And inequality must be decreased; this could be achieved by closing the productivity gap between upgraded companies and the many firms whose productivity is low. As set out in this report, the region made some progress between 2002 and 2010, with labour productivity rising at the rate of 1.5% a year. But this progress falls short of that seen in other regions such as Sub-Saharan Africa (2.1%) and, above all, East Asia (8.3%, not counting Japan and the Republic of Korea). Moreover, in many of the countries of the region these gains have not been distributed equitably. Therein lies a dual challenge that must be addressed: continue to increase productivity while enhancing the mechanisms for distributing gains in a way that will encourage investment and boost worker and household income. The Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labour Organization (ILO) estimate that the pace of economic growth in the region will be slightly slower in 2012 than in 2011, in a global economic scenario marked by the cooling of several of the main economic engines and a high degree of uncertainty concerning, above all, prospects for the euro zone. The region is expected to continue to hold up well to this worsening scenario, thanks to policies that leveraged more favourable conditions in the past. This will be felt in the labour markets, as well, so expectations are that unemployment will edge down by as much as two tenths of a decimal point.

The employment situation in Latin America and the Caribbean: Crisis in the labour markets and countercyclical responses

As predicted in the first bulletin, produced jointly by the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labour Organization (ILO), the impact of the economic crisis continued to be felt in Latin America and the Caribbean during the second quarter of 2009. Regional exports of goods and services contracted in response to sluggish demand on international markets, while remittances and foreign direct investment flows continued to fall, credit lost its buoyancy and the total wage bill diminished, owing mainly to job losses. As a result, the growth forecasts of many countries had to be adjusted downwards. Since the end of 2008, the countries of the region had started to implement countercyclical policies —albeit with significant differences— in an effort to use public spending to counter flagging investment and consumer-spending levels and boost aggregate demand. In this second bulletin, ECLAC and ILO show how the impact of the crisis has deepened in labour markets in the region in the first half of the year and examine existing options and the outcome of public-infrastructure and emergency employment programmes designed to mitigate the impact of the crisis on the labour market. The unemployment rate has risen in practically all countries compared with the previous year and this situation worsened further in the second quarter, when urban unemployment exceeded the rate of the corresponding period in 2008 by 1 percentage point (to stand at 8.5%, up from 7.5%), while in the first quarter, the variation was 0.6 of a percentage point. Labour indicators also point to an increase in informality, a decline in employment with social protection and a decrease in full-time employment. Labour-market trends observed in the first half-year, together with the forecast for a 1.9% decline in regional GDP in 2009, suggest that the average annual rate of urban unemployment in the region will be close to 8.5%. This forecast is slightly less pessimistic than the estimate given in the first bulletin; this is attributable to the fall in the participation rate in the first half-year to levels that are expected to remain low for the rest of the year. Without this reduction in the labour supply, due largely to the “discouragement effect”, the annual average urban unemployment rate would stand at between 8.8% and 8.9%. Thus, the open urban unemployment figure would increase by 2.5 million and if the “discouraged job-seekers” are included, then the number of additional persons not finding a niche in the urban labour market would climb to 3.2 million. In the region, as in the rest of the world, there are signs that the crisis may have reached bottom in the middle of the year. In many countries, production levels have ceased their decline and there are indications of an incipient recovery leading to cautious optimism that there may be a moderate upturn in labour markets in the fourth quarter. The pace of recovery will vary from one country to the next and is expected to be gradual at best. Even with the return to a growth path, there should be no illusion that the labour problems will immediately disappear. First, the recovery in employment is expected to lag behind the upturn in economic activity. Second, since economic growth is likely to remain moderate in the short term and well below the rates recorded between late 2003 and mid-2008, demand for labour and consequently the generation of good-quality jobs will continue to be weak. Thus, countries should not relax their efforts to defend and create decent jobs, but rather should take steps to improve the effectiveness and efficiency of available instruments. In this way, the region will be in a better position not only to confront the challenges of economic recovery, but also to strengthen the foundations for social inclusion and for advancing under more favourable conditions towards fulfilment of the Millennium Development Goals.

The employment situation in Latin America and the Caribbean: Crisis and the labour market

Since the financial and economic crisis began to affect the real economy and spread throughout the world, the region’s economies have been faced with a situation where data on employment and labour reflect the real stories of millions of women and men for whom the future has become uncertain. When these problems began to appear, the International Labour Organization (ILO) warned that the world faced a global employment crisis whose consequences could lead to a social recession. As the Economic Commission for Latin America and the Caribbean (ECLAC) has pointed out, the outbreak of the crisis put an end to a five-year period of sustained growth and falling unemployment. As early as the second half of 2008, the figures began to reflect slowing economic growth, while a downward slide began in the labour market. This initial bulletin, produced jointly by ECLAC and ILO, seeks to review the ways in which the crisis is affecting the region’s labour markets. Amidst a situation characterized by shocks and uncertainty, governments and social partners must have the inputs needed for designing public policies to increase the population’s levels of employment and well-being. It is planned to produce two further bulletins by January 2010, in order to measure the impact of the crisis on employment and provide an input to the process of defining the best public policies to reverse its consequences. The bulletin reviews the most recent available indicators and analyses them in order to establish trends and detect variations. It provides statistics for the first quarter, estimates for the rest of 2009, and a review of policies announced by the Governments. In 2008, the last year of the growth cycle, the region’s urban unemployment stood at 7.5%. According to economic growth forecasts for 2009, the average annual urban unemployment rate for the region will increase to between 8.7% and 9.1%; in other words, between 2.8 million and 3.9 million additional people will swell the ranks of the unemployed. Data for the first quarter of 2009 already confirm that the crisis is hitting employment in the region. Compared with the first quarter of 2008, the urban unemployment rate was up by 0.6 percentage points, representing over a million people.Work will continue until September 2009 on the preparation of a new report on the employment situation, using data updated to the first half of 2009. This will provide a picture of the region’s employment situation, so that growth and employment projections can be adjusted for 2009 as a whole. Strategies for dealing with the crisis must have jobs and income protection as their central goals. Policies are moving in that direction in Latin America and the Caribbean and, if they are effective, an even greater worsening of the situation may be avoided. Labour produces wealth, generates consumption, keeps economies functioning and is a key factor in seeking out the way to more sustainable and equitable growth once the crisis is past.

Employment Situation in Latin America and the Caribbean: Universal social protection in labour markets with high levels of informality

The Employment Situation in Latin America and the Caribbean is a twice-yearly report prepared jointly by the Economic Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC) and the Office for the Southern Cone of Latin America of the International Labour Organization (ILO).

Sustainable development 20 years on from the earth summit: progress, gaps and strategic guidelines for Latin America and the Caribbean

Includes bibliography

Globalization and development

Includes bibliography

Millennium development goals: advances in environmentally sustainable development in Latin America and the Caribbean

Includes bibliography

Employment Situation in Latin America and the Caribbean: Employment in microenterprises between 2003 and 2013. Improvements and challenges

The Employment Situation in Latin America and the Caribbean is a twice-yearly report prepared jointly by the Economic Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC) and the Office for the Southern Cone of Latin America of the International Labour Organization (ILO).

Employment Situation in Latin America and the Caribbean: Recent improvements and persistent gaps in rural employment

This new edition of Employment situation in Latin America and the Caribbean, a twice-yearly report prepared jointly by the Economic Commission for Latin America and the Caribbean (ECLAC) and the Office for the Southern Cone of Latin America of the International Labour Organization (ILO), discusses how weak job creation led to the third consecutive annual decline in the employment rate, which fell by 0.4 percentage points in 2015, indicating a reduction in the number of labour income earners per household. The ensuing drop in household income has played a large part in the increase estimated in the poverty rate for 2015. The second section of this report examines employment trends in rural areas of the countries of the region between 2005 and 2014, seeing to establish whether the improvements seen in the labour markets overall in that period also occurred in rural areas, and whether the gaps compared with urban areas decreased. The data presented in that section were generated from special processing of data from national household surveys.

International financial flows: a labour point or view

Includes bibliography