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Current Labor Conditions in the Hemisphere: Present Challenges

Current Labor Conditions in the Hemisphere: Present Challenges . XIII Inter-American Conference of Ministers of Labor Salvador de Bahía, Sept. 2003 Jürgen Weller, ECLAC. Issues. General tendencies on the labor markets in LAC Specific challenges Areas of policy intervention .

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Current Labor Conditions in the Hemisphere: Present Challenges

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  1. Current Labor Conditions in the Hemisphere: Present Challenges XIII Inter-American Conference of Ministers of Labor Salvador de Bahía, Sept. 2003 Jürgen Weller, ECLAC

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

  3. Latin America and the Caribbean: Labour market participation and employment

  4. Evolution of the structure of urban employment

  5. 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

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

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

  8. Agents and relations on the labor market

  9. 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

  10. 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!

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

  12. 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!

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

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