Between 2023 and 2024, the employment rate in the region increased by 0.5 points, reaching 58.9%, while the unemployment rate rose from 6.5% to 6.1%.
Latin America has achieved relative stability in key labor indicators five years after the COVID-19 pandemic, although structural challenges persist that primarily affect the quality of employment and deepen gaps.
This is the conclusion of the report 'Labor Panorama 2024 for Latin America and the Caribbean' by the International Labor Organization (ILO), which reveals that between 2023 and 2024, the employment rate in the region increased by 0.5 points, reaching 58.9%, while the unemployment rate rose from 6.5% to 6.1%.
Despite these short-term improvements, labour force participation and employment levels remain below those recorded in 2012, reflecting insufficient job creation in recent years.
"The region has recovered pre-pandemic employment levels, but the outlook remains worrying: we are at the same point as ten years ago. Economic growth is slowing and structural deficiencies in job creation persist," explained Ana Virginia Moreira Gomes, ILO Regional Director for Latin America and the Caribbean.
Despite progress, gender employment gaps remain a central concern. In 2024, the female participation rate remained at 52.1%, well below that of men (74.3%), which means that fewer women are working or looking for work. In addition, women earn on average 20% less than men, and continue to be exposed to higher unemployment rates and lower-quality jobs.
"Gender disparities in employment remain a key obstacle to achieving true labour equality in the region. Despite some progress, the gender pay gap and gender-based occupational segregation continue to limit opportunities for women," said Gerson Martinez, Regional Specialist in Labour Economics at the ILO Regional Office for Latin America and the Caribbean, and lead author of the report.
Informal employment
The report also notes that informal employment remains a predominant feature of the labour market in the region, with a rate of 47.6% in 2024, slightly lower than in 2023 (48%).
This represents a challenge for the quality of employment and social inclusion, as it means that almost half of workers in Latin America and the Caribbean have precarious contracts, unstable income, lack of social security and greater economic vulnerability. In addition, these impacts fall disproportionately on women and young people.
While some countries in the region have made progress in the transition to a formal economy, in others informal employment continues to represent an alarming percentage of employment. These high rates continue to hinder the achievement of decent work.
The report also notes that the lack of stable and paid employment for young people remains one of the greatest concerns for the future of employment in the region. High informality, low productivity of economies and low wages are factors that continue to limit the employment prospects of this group.
"It is essential that countries in the region develop policies that effectively integrate young people into the formal labour market. This involves promoting technical and vocational education, as well as developing national care systems that facilitate the access of women, especially young women, to the labour market," said Martínez.
Outlook for 2025
By 2025, the unemployment rate is projected to remain between 5.8% and 6.2%, in a context of moderate economic growth.
"There is an urgent need to move towards social justice in Latin America and the Caribbean, and to do so it is essential to promote policies based on effective tripartite social dialogue that consolidate the progress achieved and promote more robust employment growth, with special emphasis on formalizing employment," concluded Moreira Gomes.
