A region known for its volatility, Latin America and the Caribbean (LAC) has suffered severe economic and social setbacks from crises—including the COVID-19 pandemic. These crises have taken their toll on careers, wage growth, and productivity. Employment in Crisis: The Path to Better Jobs in a Post-COVID-19 Latin America provides new evidence on the effects of crises on the region’s workers and firms and suggests several policy responses that can bolster long-term and inclusive economic growth. This report has three key findings. First, crises lead to persistent employment losses and accelerate structural changes away from the formal sector. This change occurs more through reductions in the creation of formal jobs than through job destruction. Second, some workers recover from crises, while others are permanently scarred by them. Low-skilled workers can suffer up to a decade of lower earnings caused by crises, while high-skilled workers rebound fast, exacerbating the LAC region’s high level of inequality. Formal workers suffer smaller employment and wage losses in localities with higher rates of informality. And the reduced job flows caused by crises decrease welfare, but workers in localities with more job opportunities, whether formal or informal, bounce back better. Third, crises’ cleansing effects can increase efficiency and productivity, but these effects are dampened by the LAC region’s less competitive market structure. Rather than becoming more agile and productive during economic downturns, protected sectors and firms gain market share and crowd out others, trapping valuable resources. This report proposes a three-pronged mix of policies to improve the LAC region’s responses to crises: •Create a more stable macroeconomic environment to smooth the impacts of crises, including automatic stabilizers such as unemployment insurance and short-term compensation programs; •Increase the capacity of social protection and labor programs to respond to crises and coalesce these programs into systems that complement income support with reemployment assistance and reskilling opportunities; and •Tackle structural issues, including the lack of product market competition and the spatial dimension behind poor labor market adjustment—a “good jobs and good firms†? agenda.
Author: International Monetary Fund. Strategy, Policy, & Review Department
Publisher: International Monetary Fund
Category: Business & Economics
The human cost of the recent global crisis is reflected in its impact on the labor market. Explaining why economies with similar downturns had very different employment trends can help design policies to reduce such costs and improve labor markets. This paper analyzes the recent employment experiences of six economies: Germany, Korea, Mexico, New Zealand, Spain, and Sweden. These economies represent a wide range of labor market institutions, policy responses, and outcomes to the crisis. The divergence of labor market outcomes and of the effectiveness of policies during the crisis can be explained by the interaction between the nature of the shocks and differences in the structure and institutions of each country’s economy. The worst job losses compared to the drop in output followed permanent shocks, particularly in dual labor markets and in the presence of wage rigidities. Policies to avoid job cuts were much more effective when they were well-targeted and responded to temporary shocks. In contrast, policies to facilitate labor movements were more appropriate following permanent shocks.
OECD's annual report on employment and labour markets. This edition includes articles on Moving Beyond the Jobs Crisis, The Global Crisis in Emerging Economies, Institutional and Policy Determinants of Labour Market Flows, and Part-Time Work.
Greece’s economy and society have undergone important structural changes in recent years as a result of the financial crisis and consequent austerity policies that have been implemented. The Greek labour market and employment relations system have been subject to immense pressures, leading to fundamental changes both in the structure of institutions and in the behaviour of the main employment relations actors. The present volume constitutes a first attempt to appreciate the consequences of a decade of austerity politics on the Greek labour market. Offering a multidisciplinary perspective and building on original research by leading Greek scholars in the fields of labour economics, employment relations and the sociology of work, it will discuss the impact of the crisis and the resulting policies on the Greek labour market and employment relations. This volume will be of interest to policy makers, researchers and students interested in the past, present and future of Greek employment relations and the impact of austerity on Greece.
The 2021 edition of the OECD Employment Outlook focusses on the labour market implications of the COVID‐19 crisis. Chapters 1-3 concentrate on the main labour market and social challenges brought about by the crisis and the policies to address them.
OECD's annual report on employment markets and prospects. This 2009 edition includes chapters on how the crisis has effected employment, job and worker flows, poverty, and pathways onto and off of disability benefits.
"This volume looks at EU employment policy, underpinned by the European Employment Strategy, highlighting major initiatives to tackle the disruptive effects of the economic crisis, notably the Europe 2020 Strategy and the European Semester. The guide also covers new initiatives to tackle EU unemployment or social disparities, such as the Employment Package, Youth Employment Package, and the scoreboard of key employment and social indicators. There is also a focus on promoting labor mobility, enhancing dialog with social partners, and plans to complete Europe's monetary union by introducing a common fiscal capacity." --from DG for Employment, Social Affairs and Inclusion website.
While it seems that the recession is coming to an end in many parts of Europe, challenges for the EU's labor markets and social security systems remain. Set against this background, this brochure presents 27 examples of effective and innovative labor market measures that have been implemented or modified by member states in response to the economic crisis. They range from short-time work - with varying degrees of flexibility and different subsidies - to suspending contracts and on-the-job-training, sometimes co-financed by the European Social Fund. These examples provide an excellent opportunity for all to share and learn from the most successful methods - in the best European tradition.--Publisher's description.
The book examines the socio-economic dynamics of the current economic crisis that have affected Southern European countries in general, particularly Greece and Spain. These dynamics have caused considerable effects in social, political and cultural level and have influenced the marginalised populations of both countries. This review tries to examine the social impact of the crisis on youth unemployment in Greece and Spain with particular focus on graduates of tertiary education and the constraints of labour market occurred due to the economic and political upheavals followed by the crisis. The increasing levels of unemployment, together with accumulative poverty phenomena and future uncertainty has direct implications on psychological well-being and triggers the danger of social and economic exclusion as has been investigated in the study. A further examination includes the political governance in national and European level during the crisis which have shaped the views of youth unemployed populations in both countries and occurred a shift from traditional politics.
This research documents employment opportunities of labour-market entrants during the COVID-19 crisis in the Netherlands. Two recent cohorts of graduates are studied and compared to two preCOVID-19 cohorts: the 2019 cohort was unexpectedly hit by the COVID-19 crisis about six months after entering the labour market and the 2020 cohort graduated and entered the labour market in the midst of a lockdown. Our estimation results suggest short-term effects of lockdowns on employment probabilities, specifically for relatively lower educated labour-market entrants. The effects appear to be relatively small in size and seem to fade when the lockdown measures are eased. Men seem to have suffered more than women and some sectors are hit harder than others, which could result in short-run mismatches. Overall the effects appear to be less severe than during an economic recession, which is most likely due to the tight labour market and the strong measures taken by the government to mitigate the labour-market impact of the COVID-19 crisis.