By: Staff Writer
February 18, 2025
The International Labour Organisation said in a recent report that the labour market in 2024 showed signs of “stability,” in the post-pandemic era for the Caribbean.
The report, “2024 Labour Overview of Latin America and the Caribbean,” said that: “Five years after the outbreak of the COVID-19 pandemic, the labour market outlook for Latin America and the Caribbean in 2024 shows relative stability in its main labour market indicators. In line with the moderate pace of economic growth, the employment rate increased slightly in 2024 compared with the previous year. Labour supply, as measured by the participation rate – the percentage of people of working age who are working or looking for a job – remained relatively stable, although it is still below the level of 2019. As a result of the slight increase in employment and the stability of the participation rate, the regional unemployment rate continued to fall in 2024.”
The report reveals that between 2023 and 2024, the employment rate in the region increased by 0.5 percentage points, reaching 58.9 per cent, while the unemployment rate decreased from 6.5 per cent to 6.1 per cent. Despite these short-term improvements, however, labour force participation and employment levels remain below those recorded in 2012, reflecting insufficient job creation in recent years.
“The region has reached employment levels not seen since before the COVID-19 pandemic, but the outlook remains concerning: we are in the same situation as ten years ago. Economic growth is slowing down, and structural deficiencies in job creation persist,” explained Ana Virginia Moreira Gomes, ILO Regional Director for Latin America and the Caribbean.
The report also said: “In terms of job quality, progress has also been made in the areas of informality and real wages, but this has been slight and insufficient to close the region’s historic decent work gaps. Moreover, significant disparities remain between countries, and the gaps between men and women and between young people and adults remain a persistent challenge.”
The report cautioned, however: “The region’s economy has maintained its recovery path, albeit at an increasingly slower pace. The annual growth rate of the global economy is estimated at 3.2 per cent in 2024. According to the IMF and ECLAC, Latin America and the Caribbean as a whole grew at a slower rate than the world average: 2.1 per cent and 2.2 per cent respectively. Inflation in the region, although higher than before the pandemic, has been brought under control and continues to fall.”
The unemployment rate is projected to remain between 5.8 per cent and 6.2 per cent in 2025, within a context of moderate economic growth. “Advancing social justice in Latin America and the Caribbean is urgent. To achieve this, it is essential to promote policies based on effective tripartite social dialogue that build on the progress made and foster stronger employment growth, with a particular focus on labour formalization,” concluded Moreira Gomes.