The International Labor Organization (ILO) pointed out that the phenomenon of the “working poor” is growing in Latin America and the Caribbean. As explained in the latest report published by the organization, this is due to the loss of purchasing power of the labor income.
“Labor panorama in Latin America and the Caribbean 2023”, is the report in which the ILO analyzed how the year will close in terms of employment and what the challenges are for the following year in the region. In it, the organization pointed out that the region is experiencing a context of slowdown in economic growthso job creation “may continue to be biased towards generation of informal positions” and with lower salaries.
Poor workers: the phenomenon that is growing, according to the ILO
Regarding the purchasing power of salaries, the report detailed that the evolution of real labor income “has become increasingly complex Due to the inflationary acceleration and his negative impact on the purchasing power of salaries”.
In that sense, he pointed out that in the majority of countries with updated information, the average real hourly wages are lower than those recorded before the start of the pandemicfour years ago.
“The loss of purchasing power of labor income makes the ‘poor worker phenomenon’-which means that people can live in poverty even if they have a job- can continue to grow in the region”said the report.
He added that, considering that the employment levels in several countries They returned to pre-pandemic values or are close to them, “the aggregate of real labor and family income is still lower than at that time”.
In the report, the organization projected a “highly complex” work scenario in the Latin American and Caribbean region, a context in which it states that The implementation and strengthening of policies will be necessary so that the reality of the “poor worker” does not spread.concluded its latest annual report published this Tuesday.
With the data shown, the report concluded that Policies are needed to support job creationwith a special focus on labor formalization. On the other hand, given the inflationary pressureis crucial to strengthen labor institutionsespecially the minimum salary and the collective bargaining mechanisms.
A process in which “social dialogue plays a fundamental role in navigating this path (…) in a constantly changing work environmentwhere Closing persistent employment gaps becomes crucial for enhance the benefits of digital, demographic and fair transitions.
Source: Ambito
