Latin America and the Caribbean: Three decades of labour transformations, progress and persistent challenges

SANTIAGO (ILO News) – Employment quality, labour inclusion, and social protection in Latin America and the Caribbean have seen notable improvements since the mid-1990s. However, structural transformations remain insufficient to generate the quality jobs demanded by the region’s growing labour force, to boost productivity for a more equitable distribution of the fruits of growth, and to ensure fairer and more sustainable labour trajectories for all. These findings are detailed in the new ILO Technical Report No. 50: Work, Employment, Labour and Social Protection in Latin America and the Caribbean, 1994–2024, published by the ILO.

The report, elaborated by Fabio Bertranou, Deputy Director of the ILO Office for Latin America and the Caribbean, and Sonia Gontero, Wages and Working Time Specialist at the ILO Southern Cone Office, provides an in-depth analysis of major transformations in the world of work over the past three decades. Through a review of key indicators and structural trends in the region, the report examines progress, setbacks and emerging challenges in employment, job quality, labour and social protection, gender equality, youth, technology, and climate change.

Key highlights include:

• The productivity gap between large and small enterprises continue to hinder the creation of quality jobs.
• Labour informality still affects around half of all workers in the region, with significant differences across countries, sectors and population groups. This remains a major barrier to economic growth, social protection, and productivity.
• Intra-regional migration has gained relative importance, and the labour integration of migrants poses a key policy challenge for host countries.
• Young people have higher average education levels than previous generations. However, those from vulnerable households continue to face major obstacles in accessing formal, well-paid employment and building upward career paths.
• The increased participation of women in paid work has reshaped labour market dynamics in the region. Nonetheless, significant progress is still needed to ensure their full inclusion.
• Labour institutions have being strengthened, reflected in international conventions ratifications, improved in labour legislation and minimum wages, reduced excessive working hours, broader collective bargaining coverage, and greater promotion of social dialogue.
• Structural reforms have strengthened social protection systems. However, further improvements in governance and coordination between contributory and non-contributory components are needed.

In a global context of growing uncertainty, investing in decent work, social protection, and robust labour institutions is not only a matter of social justice, but also a strategic path to more sustainable and resilient growth” the report states.

New challenges for the future of work

The report analyses the impact of technological, environmental, and demographic transitions, with emphasis on the following areas:

• Technological transformation has enabled the expansion of new business models through digital platforms, along with the widespread use of artificial intelligence—particularly generative AI—which is reshaping how work is organized.
• Climate change poses a dual challenge: adapting to protect occupational safety and health amid extreme climate events, and managing labour transitions to ensure that workers, communities, and sectors dependent on high-emission industries are not left behind. Coordinated labour, training, production, and social protection policies are essential to address these global trends.
• The region is characterized by high labour force participation among persons beyond the legal retirement age, mainly driven by economic needs. In the context of accelerated population ageing, policies must be designed to support voluntary extension of working life, and modernized employment strategies, labour institutions and social security systems.

Building resilient institutions for inclusive and fair development

The report concludes with a call to strengthen labour institutions as a cornerstone of social cohesion and economic sustainability. Its main recommendations include:

• Promoting comprehensive productive development and employment policies with a territorial approach and a focus on just transition.
• Advancing labour formalization through integrated measures, including incentives, labour inspection, training, access to finance, and social protection.
• Reinforcing tripartite social dialogue to build consensus around issues such as working time regulations, minimum wages, collective bargaining, and labour rights in evolving contexts.
• Ensuring inclusive labour trajectories for youth, women, and older persons, by adapting public policies to the changing world of work.

“Investing in strong labour institutions and active policies to protect and promote decent work is essential to meet the challenges of the coming decades and to ensure no one is left behind in the world of work” the authors conclude.