ECLAC and ILO recommend implementing labor reactivation policies to mitigate the impact of COVID-19 in Latin American economies
1 diciembre 2020

LABOR

Labor recovery. On November 10, the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labor Organization (ILO) issued a report warning that after the COVID-19 pandemic, the region’s labor markets will have a slow recovery. Due to this, the organizations urged nations to implement active macro policies and sectoral policies to promote sustainable development with employment. Among their recommendations, it is important to generate a supply of training services and labor training, integrated with active labor market policies. It is expected that the countries of the region will take into account the positioning of both organizations to support eventual public policies in this area.

In their recommendations, the organizations proposed promoting environmental policies that stimulate employment, active fiscal policies, investment projects with a focus on environmental sustainability, industrial and technological policies, and policies aimed at increasing competitiveness. On the other hand, they stressed the need to grant financing to micro, small and medium-sized enterprises.

According to their estimates, the level of regional gross domestic product (GDP) in 2019 would only be reached again in 2025, taking into account the average rate of 1.8% of the last decade. In turn, they considered that the level of GDP could be achieved in 2030 if the average rate of 0.4% of the last six years is considered. In addition, they highlighted that the region would take longer to meet the goals established in the Sustainable Development Goals.

The ECLAC and ILO report also stated that those most affected by the COVID-19 pandemic were women, young people and immigrants. In addition, they assured that the pandemic has resulted in the largest labor, economic, productive and social contraction in the last hundred years.

Next steps

The organizations warned that after the COVID-19 pandemic, labor markets in the region will have a slow recovery and urged nations to implement active macro policies and sectoral policies to promote sustainable development with employment. It is expected that the countries of the region will take into consideration the report issued by ECLAC and ILO in their process of building public policies aimed at recovering the economy and employment.

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