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News Article

ILO Unemployment Report Forecasts Troubled 2022

By Sofía Hanna | Tue, 01/18/2022 - 10:07

The International Labor Organization (ILO) reports that job prospects have deteriorated worldwide, with recovery patterns varying considerably between regions, countries and sectors. Mexico’s labor market is also at risk from the new strain of COVID-19, which could lead to the closure of economic activities. 

 

Given the continuing uncertainty regarding the future course of the pandemic, ILO forecasts that global unemployment will remain above pre-pandemic levels until 2023 at least. Moreover, inequalities in and between countries are becoming more pronounced.

 

Latin America’s SMEs, one of the largest sources of employment in the region, are seeing massive closures, leading to further job losses and complicating the region’s short-term recovery. “Latin America and the Caribbean are the regions for which the projections are the least optimistic. This is due to a variety of reasons but in summary, we do not foresee a return of the main indicators to where they were in 2019 before 2023, at least,” said Richard Samans, Director, ILO Research Department. To achieve a people-centered recovery, ILO urges countries to implement inclusive economic growth and development, worker protections, universal social protection and social dialogue.

 

In Mexico, many are worried about the rapidly rising cases of COVID-19 but President Andrés Manuel López Obrador assured that the new variant, Omicron, would not derail the country’s economy. “I don’t see the same situation as with the Delta variant when there were many layoffs. That’s not going to happen and it is not happening. What we suffered in December was not due to COVID-19. It was what some companies always do: fire workers so that they are not paid bonuses or other benefits. It is totally different from COVID-19,” as previously reported by MBN.

 

However, INEGI’s latest unemployment reports show that unemployment climbed to 4.66 percent in Nov. 2021 (4.48 percent among men and 4.91 percent among women), while in Nov. 2019 it amounted to 4.30 percent (4.11 percent among men and 4.54 among women).

The data used in this article was sourced from:  
ILO, MBN, INEGI
Sofía Hanna Sofía Hanna Journalist and Industry Analyst