BUENOS AIRES: As recessions in Brazil and Venezuela continue to reverberate across Latin America, unemployment is expected to rise across the region with the notable exception of Argentina, according to a new report released by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labour Organization (ILO).
“In South American countries, with the exception of Argentina, the performance of this indicator (unemployment) worsened in the first half of 2015 from previous years, and also did between the first and second quarters,” the joint ECLAC-ILO report said.
The UN study also highlighted an anticipated rise in future joblessness for people living in towns and cities across the region, as growth in Latin America slowed during the first six months of the year.
“The deceleration of economic growth seen during 2015 is affecting labour indicators in the region and will take the urban unemployment rate to 6.6 percent this year, after marking 6.0 percent in 2014, according to estimates,” ECLAC and ILO said.
There was better news for a handful of Latin American and Caribbean countries including Argentina that were expected to prove exceptions to the rule.
“With the exception of Argentina, Jamaica and Mexico, the evolution of unemployment rates in the second quarter was less favorable than in the first. In South American countries, with the exception of Argentina, the performance of this indicator worsened in the first half of 2015 from previous years, and also did between the first and second quarters.”
The two UN organizations suggested states take a number of structural economic policies in order to combat rising unemployment during the second half of the year.
“The region must intensify efforts to remove hurdles and create an environment conducive to their growth and development. The organizations (ECLAC and ILO) add that the growth of companies should be promoted through more incorporation of technology, access to adequate financing, greater innovation, better access to markets, and a more qualified labour force,” it said.
Salaried Employment Up
Regarding explanations as to why Argentina seemed to buck the trend for regional and specifically South American economies, the study examined the steady rise in salaried employment across the country which was not reflected in a number of other neighbouring countries.
“The trend of an increase in the proportion of wage employment is concentrated in the three most populous nations in the region — Argentina, 81.8 percent to 84.8 percent; Brazil, 67.6 percent to 78.7 percent, and Mexico, 67.8 percent to 71.4 percent,” noted the report.
This set these nations apart from the majority where non-salaried self-employment was up for the first half of 2015. According to the data provided, Costa Rica, Ecuador, Mexico, Panama, Paraguay and Peru all showed increases in the self-employment at faster rates than salaried work, something which did not apply to Argentina.
“The exceptions were Argentina, Chile and Colombia, where this category expanded less than wage employment,” noted the report.
Afghan relations Pakistan still wants to rub shoulders despite allegations
KABUL: Despite all the rampant allegations propagated by Afghanistan regarding the use of Pakistani soil to foment terror in the...
