By: Staff Writer
December 1, 2023
The Economic Commission for Latin America and the Caribbean (ECLAC) in a new report said that there was a fall in rates of poverty and extreme poverty in 2022 and a reduction in income inequality.
The report, Social Panorama of Latin America and the Caribbean 2023: Labour inclusion as a key axis of inclusive social development, also said that there was an increase in labour participation and employment rates, and a drop in unemployment. In addition, inflation is trending down, although it is likely to remain above pre-pandemic levels.”
The report warned, however, growth in Latin America and the Caribbean is likely to remain sluggish in 2023, with an estimated GDP expansion of 1.7 percent, significantly lower than the 3.8 percent recorded in 2022, and possibly as little as 1.5 percent in 2024.
“Although we point to the reduction of poverty in 2022, there is no reason to celebrate. More than 180m people in our region do not have enough income to meet their basic needs, and 70m of them lack the income needed to acquire a basic food basket. In total, nearly one-third of the region’s population is living in poverty, a percentage that rises to 42.5 percent in the case of children and adolescents – a reality we cannot tolerate. The incidence of poverty is also higher among women, the indigenous population and people who live in rural areas,” indicated José Manuel Salazar-Xirinachs, ECLAC’s highest authority.
According to the report, job creation between 2014 and 2023 hit its lowest level since the 1950s. In 2020, during the pandemic, job creation fell by 8.2 percent, marking the only decline recorded in the last 70 years.
Among the 292m people employed in the region, 1 out of every 2 has an informal job, nearly one-fifth lives in poverty, 4 in 10 have labour income below the minimum wage, and half does not contribute to pension systems, according to the report.
“The region remains caught in a double structural trap of low growth and high levels of poverty and inequality. Countries must move from labour market insertion to labour inclusion, which is the pillar of inclusive social development. But labour inclusion requires high and sustained economic growth. It is not possible to create a better work future without creating a better production future, and vice versa,” said Mr Manuel Salazar-Xirinachs during the presentation of the report, pointing to the close relationship between countries’ productive development policies, labour policies and social protection policies.
The report presented today confirms that historical gender gaps in labour markets continue to persist.