Transcript Document

2004 LABOUR OVERVIEW AND OUTLOOK
XXXVIII GRIC / SIRG
GRIC inf 17/05
June 8, 2005
Original: spanish
1. Overview
economic data
labour data
2. Creating jobs to confront poverty and strengthen
democratic governance
Poverty
economic, social and political dimensions
Democracy
economic, social and political dimensions
3. A development model which is decent work-friendly
4. Some concrete proposals
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ECONOMIC DATA
- 2004 global economic growth: 5.1%
• highest growth rate since the ‘70s
• forecasts for 2005: 4.1%
- Latin America and the Caribbean economic growth 5.8%
• highest growth rate since 1985
• for the second time in 20 years, the 6 largest
economies grew simultaneously more than 3%
• several countries grew more than 5%
• forecasts for 2005: 4.1% - 4.4%
- The outlook for 2006 is not so encouraging
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ECONOMIC DATA FOR
LATIN AMERICA AND THE CARIBBEAN
•
Average inflation rate: 6.5% in 2004 and 10.6% in 2003
•
For third consecutive year there was a positive trade balance
•
Most important destination for remittances in the world
-US$45.8 bn (2004) / US$ 38 bn (2003)
-75% of the remittances come from the U.S.A.
-Mexico is the primary destination of remittances (US$ 16.6 bn)
•
Foreign direct investment (FDI) increased for the first time since 1999
-Brazil was the principal recipient (US$ 18 bn)
•
Poverty:
42.9%
Indigence: 18.6%
•
Income inequality (no significant variation since 1990)
10% + richest
10% + poorest
222 millons approx
96 millons approx
35.6% of total income
1.7% of total income
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LABOUR DATA FOR
LATIN AMERICA AND THE CARIBBEAN
UNEMPLOYMENT
•
19 millons of unemployed urban workers (unemployment rate
similar to that of 1998)
•
Economic growth without job creation
Growth
Unemployment
CHILE
MEXICO
2003
3.3%
1.6%
2004
6.0%
4.4%
2003
8.5%
3.3%
2004
8.8%
3.8%
•
Female unemployment rate is 1.4 times higher than that of men
•
Youth unemployment rate: 20.9% (double the total rate)
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LABOUR DATA FOR
LATIN AMERICA AND THE CARIBBEAN
INFORMAL SECTOR
•
1990-2003: 61 out of 100 newly employed workers
•
46.7% of the total non-agricultural employed workers belong to the
informal sector
•
More informal female workers than male workers
•
Colombia and Paraguay + than 60%
Chile and Uruguay
- than 40%
WAGES
•
Manufacturing wages (for 15 countries) > 5% in real terms
•
Minimum wages (for 16 countries) in 9>, in 7<
Average weighted wage > 8%
Average weighted wage > 2.1% (excluding Argentina)
•
The Latinobarometro survey rates on those who cannot meet the
monthly expenses on the family’s income:
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2000: 12%
2004: 24%
LABOUR DATA FOR
LATIN AMERICA AND THE CARIBBEAN
•
Access to some type of social protection
6 of every 10 new wage and salaried workers
2 of every 10 new wage and salaried informal sector workers
•
Rate of workers worried abount being laid off within the next 12
months:
76% according to a Latinobarometro survey
•
1.3 million people are victims of forced labour
•
27.7 millon children are employed in economic activities, many
of them in dangerous conditions
•
30 millon of labour accidents per year, most of them not officially
reported (= 10% of the regional GDP)
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CREATING JOBS TO CONFRONT POVERTY AND
STRENGTHEN DEMOCRATIC GOVERNANCE
The theme for the upcoming IV Summit of the Americas
highlights three important facts, among others.
a) The lack of good quality jobs is today the main concern
of women and men in our countries, as indicated by
several opinion polls.
b) Policies applied during the last decades have led to
economic growth without generating enough quality jobs.
c) Employment is key for a better present and future
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POVERTY
"We are certain that poverty cannot be resolved through
welfare programs. Even when such programs constitute a
necessary measure until an effective solution to the problem
is found, we must avoid creating societies that are divided
among those who have work and those on welfare. (…)
Moreover, we reaffirm our belief that decent work as
conceived by the ILO is the most effective framework for
improving the standards of living of our nations and for
sharing the wealth of material and human progress.”
“Declaration of Santa Cruz”, Heads of State and Government of
the Americas, No. 23, November 2003
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DEMOCRACY
Work is still the best way to achieve personal success
and to better play our role within society: it helps in
enhancing self-esteem, provides social prestige and
generates income which facilitates civil and political
participation. Work is, has been and will remain the
key component of the social contract. It forms the
basis for creating societies of free women and men,
and it is the foundation for democratic governance.
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A DEVELOPMENT MODEL WHICH IS DECENT WORK-FRIENDLY
In the Third Millennium, the strengthening of democracy and
freedom within the Hemisphere demands a development policy
which promotes economic growth and simultaneously is decent
work-friendly. Such a development model must be based on
the integration of economic and social policies.
“We are committed to the principles of decent work proclaimed
by the International Labour Organization,”
“Declaration of Nuevo Leon”, Heads of State and Government of the Americas,
January 2004
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DECENT WORK:
CATALYST OF POLICY INTEGRATION
Economic Dimension:
Regional Employment Conferences in MERCOSUR, CAN, SICA,
CARICOM (2004/2005) propose linking and integrating
macroeconomic, mesoeconomic and microeconomic policies to
generate more and better jobs,.
Social Dimension:
Financing and extension of social protection policies; emphasis on
occupational safety and health.
Poltical Dimension:
Declaration of Fundamental Principles and Basic Rights at Work
(Interamerican Democratic Charter, 2001); tripartite social dialogue
to generate consensus and social cohesion.
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SOME CONCRETE PROPOSALS
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That the America be an area free of child labour and forced labour
conditions.
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Investment and maintenance in infrastructure oriented to generate
employment and business development, especially the promotion
of small and medium enterprises.
•
Support entreprenership and employment among youth.
•
Multilateral financial organisms must develop credit programs to
support decent work generation (with adequate technical
assistance and in permanent social dialogue with governments).
•
Improve national institutions to facilitate the reduction of
transaction costs and thus promote formal productive and labour
activities.
•
Promote public and private efforts to reduce the gender gap.
•
Reduce work-related accidents and illnesses.
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