Latin America, Caribbean will take years to recover from COVID induced job losses: UN

The United Nation's Economic Commission for Latin America and the Caribbean (ECLAC) and the International Labour Organisation (ILO) have released a joint report warning that the post-COVID-19 job recovery in the region will take a lot of time. The report said that it will take several years before the labour market in the region could return to pre-pandemic levels. The UN organisations stressed active macro policies along with sectoral policies will be needed in the region to bring back the employment rate to the Sustainable Development Goals (SDGs) level.  

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Labour-intensive projects required

The report stated that it is also necessary to provide financing with longer maturities and at a lower cost to Micro, Small, and Medium-sized Enterprises (MSMEs). The report highlighted that more labour-intensive investment projects are needed in the region in order to provide a boost to the labour market that has dipped due to COVID-19 lockdown and is affecting the regional Gross Domestic Product (GDP).

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"In terms of employment, the health crisis affected vulnerable groups above all, deepening inequality in the labor market. Women have been most affected by job losses and the decline in labor market participation. A strategic view must link sustainable development with job creation," the report said. 

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According to the report, women, young people, and migrants are the most affected group by the ongoing health crisis, which has taken a massive toll on the labour market dynamics. The groups most impacted are those who cannot work from home as their jobs require them to be present in the field. The report stated that approximately 47 million people lost their jobs across the region in the second quarter, that is when the greatest effects were felt. 

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