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La proteccion del empleo en las Américas.

La proteccion del empleo en las Américas.

Francisco Zapata

Volume : 44-1 (1989)

Abstract

This paper is dealing with three issues. First, we consider major labour force trends in Latin America between 1950-1980. Secondly, we analyze the impact of the recent economic crisis and examine the emergency measures which have been adopted to deal with high levels of unemployment. Thirdly, we discuss the consequences that industrial transformations have had on labour markets.

The evolution of the labour force in Latin America leads toward an essentially urban labour market which, in 1985, comprised 72% of the total labour force. This labour market is also characterized by a strong proportion of occupations in the service sectors - education, health care, civil service, etc. - and by a rapidly growing participation rate of women, particularly in the service sectors where it represents two thirds of total employment. On the other hand, the labour market can be clearly divided into two distinct segments: the formal labour market and the informai labour market, the former accounting for two thirds and the latter for one third of total employment. Several studies, particularly those done by the Regional Employment Program for Latin America and the Caribbeans have illustrated the specifie characteristics of the informai labour market.

The economic crisis affecting Latin America aggravates unemployment and forces countries to adopt emergency measures such as the Minimum Employment Program in Chile, the Emergency Employment Program in Panama, or the Support to Temporary Employment Program in Brazil. These programs have given transitory employment to workers who had been laid off from the formai labour market but at much lower rates of pay and in inferior types of economie activities (public buildings and road maintenance, sanitation occupations, etc). They have also attracted young workers who were joining the labour force for the first time and spouses whose husbands had been laid off. However, these minimum employment programs have not been institutionalized and, as a consequence, their status is very precarious.

It is thus not possible to consider them as a permanent solution to the effects of the economic crisis. As was mentioned by the Regional Employment Program for Latin America and the Caribbeans, a permanent solution could be envisaged only if a serious inventory of labour intensive prograr.is was made and if such inventory would take into consideration personel characteristics of available workers such as age, qualifications, work experience, etc.

The industrial transformations which have brought new activities (electronics, telecommunications, sub-contracting) and which have increased productivity in existing activities, give some hope for new employment opportunities in Latin America. However, the creation of new jobs has been obtained at the expense of employment stability which used to exist and has led to the setting up of unemployment insurance programs to take care of displaced workers. For this reason, it is difficult to evaluate the impact that new economic development measures will have upon the labour market. Since it is impossible to consider industrial transformation as the best mechanism to solve unemployment problems in Latin America, we should not be surprised if job creation has not been more important so far, at least in quantitative terms.