Current Labor Conditions in the Hemisphere: Present Challenges XIII Inter-American Conference of Ministers of Labor Salvador de Bahía, Sept Jürgen Weller, ECLAC

Issues General tendencies on the labor markets in LAC Specific challenges Areas of policy intervention

Latin America and the Caribbean: Labour market participation and employment

Evolution of the structure of urban employment

Specific challenges on the labor markets - 1 Important challenges “at both extremes”: Compete with quality and productivity: growing demand for highly qualified staff Weak demand for workers with low formal education (especially women): sector and technological changes

Higher instability, less protection Macroeconomic volatility The challenges of open markets Less stable contractual relationsships Specific challenges on the labor markets - 2

Productive integration of youth Starting-point seems favorable (demographics, education) But results cannot satisfy (youth unemployment, informality) Impact of economic crisis Multiple negative consequences Specific challenges on the labor markets - 3

Agents and relations on the labor market

Some origins of labor market problems  General conditions: Adverse macroeconomic or political environment => low growth, low labor demand  Enterprises: Low productive development, low competitiveness => low productivity, low wages  Workers: Low level of education and ability => low productivity, low wages  Labor market instituciones: Disequilibrium between objectives of efficiency and equity => rigidities, employment of low quality, mistrust

Policy challenges: Employment policy on the macro level Macroeconomic policy for long-term growth and smoothening of volatility Relative prices favorable for productive development => Seek for coalition, not confrontation with the Minister of Finance!

Long-range sector policies: education, regional development, promotion of productive activities Labor demand incentives in specific sectors => Macro conditions are fundamental, but require complements Policy challenges: Employment policy on the meso level

Policy challenges: Labor market institutions Re-regulate labor institutions amidst tensions: Between flexibility and stability Between efficiency and protection Between costs and income Between internal and external (national and supranational) regulations => No “first best” exists – need for a negotiated, country specific search!

Improve productivity: continuous training Improve employability, no discrimination Improve integration of youth into the labor market Promotion of microenterprises Unemployment insurance Policy challenges: Labor market policies