Work, Institutions and Democracy: Five Interconnected Structural Trends Reshaping the World of Work in Latin America and the Caribbean

This policy brief examines five interconnected structural trends transforming the world of work in Latin America and the Caribbean: the demographic transition; technological change and artificial intelligence; the green transition and sustainable jobs; the persistence of informality; and challenges related to fiscal capacity and democratic governance.

The analysis argues that outcomes are not predetermined. While these transformations create opportunities to boost productivity, innovation and sustainable development, they also carry risks of greater polarization, inequality and informality. Regional evidence shows that institutional quality, robust social protection systems, the promotion of sustainable enterprises and effective social dialogue are decisive factors in steering these processes towards inclusive and socially legitimate growth.

Within this framework, the brief reaffirms that strengthening labour and democratic institutions is not a secondary condition, but the central element in shaping a future of work grounded in social justice and sustainable development.