The labor market in Latin America at the time of the COVID-19 pandemic: impacts, responses and perspectives

Abstract

Latin America is experiencing an unprecedented crisis in its labor markets because of the COVID-19 pandemic. This is reflected in a drastic contraction of employment, hours worked, and income. The outlook is even more worrying when considering that these impacts have been unequal and that the path of recovery, which is slowly emerging in the region, could be accompanied by a widening of labor and income gaps across different population groups. This crisis, therefore, would be exacerbating the high levels of inequality that existed before the outbreak of the pandemic, even though countries have made significant efforts to rapidly implement a set of policies aimed at sustaining employment and incomes. It is crucial to strengthen the labor institutional framework, particularly with regard to active labor market policies. Likewise, occupational health and safety have become a relevant element for any recovery strategies with safe and healthy employment.