Employment Situation in Latin America and the Caribbean. Real wages during the pandemic: Trends and challenges

Abstract

There were signs of a partial recovery in the labour markets and economies of Latin America and the Caribbean during 2021, in the wake of the crisis caused by the coronavirus disease (COVID-19) pandemic. Nonetheless, although the labour force participation rate and employment both improved in the year, figures for some of the groups hit hardest by the pandemic, such as women and domestic workers, remained well below pre-pandemic levels. The partial recovery in local demand and the effect of global conditions on production costs contributed to a rise in regional inflation, in turn affecting minimum wages and real wages. The second section of this report outlines how real wages in the region remain further from pre-pandemic levels than employment and economic activity, and underscores the importance of institutional mechanisms and social dialogue in the world of work to facilitate appropriate adjustments to workers’ wages in Latin America and the Caribbean.