Labour market in Caribbean and Latin America still struggling, says latest ILO report

The International Labour Organization (ILO) reveals that despite some improvements, the labor market in Latin America and the Caribbean still faces significant challenges. This is according to a recent report published by the organization.

The “2024 Labour Overview of Latin America and the Caribbean” points out that issues like labor informality, gender inequalities, and limited access to formal employment for young people are major barriers to achieving a more equitable job market in the region. Although the employment rate increased slightly from 58.4% to 58.9%, and the unemployment rate fell from 6.5% to 6.1% between 2023 and 2024, these figures still reflect a labor market struggling to recover fully.

One of the key findings of the report is the persistent gender gap in employment. In 2024, only 52.1% of women were in the labor force compared to 74.3% of men, demonstrating that fewer women are working or seeking jobs. Additionally, women earn about 20% less than their male counterparts and are more likely to experience unemployment.

As Gerson Martinez, a regional labor economics specialist, stated, these gender disparities are serious obstacles to achieving true equality in the workplace, noting, “the gender pay gap and gender-based occupational segregation continue to limit opportunities for women.”

Moreover, labor informality persists, with nearly 47.6% of workers in unstable positions lacking basic job protections, which disproportionately affects women and young workers.

Youth unemployment is another pressing issue. Although the youth unemployment rate dropped slightly from 14.5% in 2023 to 13.8% in 2024, it remains nearly three times higher than that of adults. Young people aged 15 to 24 are facing limited job opportunities, exacerbated by high informality rates and low wages. The report emphasizes the need for policies that integrate youth into the formal job market, which could include promoting vocational education and creating stable job opportunities.

Additionally, the report indicates ongoing disparities between urban and rural employment, with urban areas showing higher recovery rates post-pandemic. Looking ahead, the ILO stresses the importance of advancing job recovery and formalization to enhance social justice in the labor markets of Latin America and the Caribbean.

The reported unemployment rate for Dominica in 2024 was %13.04, as reported by Globaldata.com.