LABOR

Youth Employment. On June 17, the International Labor Organization, at its annual summit, issued a Global Call to Action, with the goal of achieving a people-centered economic and labor recovery from the pandemic. They recommend prioritizing the creation of decent jobs and addressing the inequalities caused by the crisis. This agreement seeks to encourage governments to take active measures to promote formal employment. Among ILO’s recommendations are that the various executive branches facilitate the exit from the economic crisis through financial, fiscal and industrial support policies that promote equity and stability. Along these lines, it is expected that in the coming months governments will promote initiatives to support the continuity of business activity in an environment favorable to innovation. They are also expected to promote the discussion of executive and legislative measures to create incentives for employers to maintain jobs despite the downturn in activity.

This decision stems from the report published by ILO on June 2 in which the “World Employment and Social Outlook” is developed. This document states that the crisis that caused the pandemic in the labor market will have a slow recovery, with risks of reaching greater geographic and demographic inequality, more poverty and fewer decent jobs. In particular, ILO highlights the impact on youth employment, with a global drop of 8.7% during 2020 and a further aggravation of gender disparities. Looking ahead, they note that projected employment growth will be insufficient to close the gaps created by the pandemic, and that young adults will see the consequences of the disruption of early labor market experience for years to come.

Thus, ILO highlights the jobs deficit resulting from the global health situation, estimating that it will reach 75 million by 2021. Added to this is a deficit in working hours amounting to 3.5%, approximately 100 million full-time jobs. By 2022, 205 million people are expected to be unemployed worldwide. This effect had its greatest impact on the most vulnerable workers in Latin America and the Caribbean, Europe and Central Asia during the first half of 2021.

The publication also notes that the fall in employment and working hours translated into lower incomes and an increase of 108 million people in the category of working poor or extremely poor, delaying the global progress made over the past five years towards the eradication of working poverty.

Next steps

ILO Director-General Guy Ryder stressed the importance of developing a comprehensive and coordinated strategy with clear guidelines for action and financing based on people-centered policies to bring the labor market back to real recovery. Although the ILO’s Global Call to Action is not binding, it has the support of delegates from 181 countries. In this regard, it is expected that in the medium term, national governments, businesses and international agencies will work to develop public policies that focus on promoting broad-based economic growth and productive job creation; supporting household income and labor market transitions; strengthening the institutional foundations necessary for inclusive, sustainable and resilient economic growth and development; and using social dialogue to formulate human-centered recovery strategies.