The Employment Quality Index (EQI) reveals a "worrying" trend, as most countries in the region have shown moderate or no improvements in employment quality since 2016.
World Bank Vice President for Latin America and the Caribbean Carlos Felipe Jaramillo has urged countries in Latin America to create quality jobs that will enable greater development in the region in the future.
"Empowering the population of Latin America and the Caribbean through quality jobs is essential for the development of the region," Jaramillo said in a public forum, describing this step as part of an "urgent agenda" for the region.
He argued that the world has changed significantly over the past decade. New technologies and ideas are driving economic growth. However, the labor market in Latin America and the Caribbean has not kept pace.
"Young people entering the workforce today find jobs of the same quality as they did almost a decade ago. For a region struggling with low growth and persistent poverty, this is an urgent agenda," he said.
Jaramillo has stated that the region is stagnating on this front. The World Bank's Employment Quality Index (ICE) reveals a "worrying" trend, since since 2016, most countries in Latin America and the Caribbean have shown moderate or no improvements in the quality of employment.
"While countries such as Brazil, Colombia, Costa Rica, El Salvador and Mexico have seen modest improvements, the overall picture remains bleak," he said.
The European Commission has invited the various Latin American countries to look to the future and to value the opportunities that can be seized and that can lead to the creation of the necessary quality jobs, such as the ecological transition and relocation.
To do so, the region must adapt quickly. Currently, only 2 in 10 workers are in jobs that will directly benefit from a greener economy. Generative AI could also offer pathways to better jobs, as it could boost productivity for up to 14% of workers in Latin America and the Caribbean.
However, inadequate digital infrastructure means that nearly half of these workers - around 17 million - will not be able to access the benefits of this technology to improve their job prospects and increase their wages.
EDUCATION, LABOUR REFORM AND INFRASTRUCTURE
Jaramillo explained that there are three key areas in which governments must act to meet the challenge of quality employment. The first, "and most important," is education. In this regard, he encouraged investing in young people, expanding technical and tertiary education opportunities, ensuring that people can develop the socio-emotional and digital skills necessary to adapt to an evolving labor market.
Second, implementing labour market reforms that ensure fair wages, job security and decent working conditions can significantly improve the quality of employment. This involves enforcing labour laws and providing social protection to all workers.
Finally, improving digital infrastructure and encouraging both workers and employers to adopt digital technologies, ensuring that connectivity is accessible and equitable, will contribute to this goal.
