While the population growth rate will decrease, the workforce will increase until 2050 with more than 400 million people added to the labor market. The need to create jobs, make them more productive, and drive economic growth is a virtuous circle to address the challenge.

In a recently published report by the Economic Commission for Latin America and the Caribbean (ECLAC), it is revealed that the population of the region reached 652 million inhabitants in the year 2023, of which 331 million (50.8%) are part of the labor market.

The document highlights that the population growth rate in the region will decrease, projecting a population of 737 million people in 2050, with a workforce of 402.7 million, corresponding to 54.6% of the total population.

Given this outlook, José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, points out that absorbing an additional workforce will continue to be a significant challenge for the labor markets in the region.

Salazar-Xirinachs emphasized the need to increase productivity, drive economic growth, and create quality jobs to adapt to a larger and more diverse workforce in terms of ages, with a focus on the inclusion of women and older people in the labor market, as well as in urban environments.

Youth Pressures the Labor Market

The 2023 Demographic Observatory highlights that Latin America has experienced significant demographic transformations in the last seven decades, characterized by a marked decrease in fertility and mortality. The age structure of the population has changed, with youth and adult groups currently constituting the majority.

The analysis reveals that, in many Latin American countries, young adult groups have the highest percentage of the population, generating additional pressure on labor markets. Furthermore, by 2050, it is expected that workforce growth will surpass population growth, which will continue to be a significant challenge.

The report also highlights projections of changes in the age, sex, and urban or rural structure of the workforce. An annual growth of 3.9 million people is projected for the period 2022-2032 and 1.5 million people for 2040-2050.

Increase in the Female Workforce

Regarding the female workforce, a steady increase is expected, representing approximately 73% in the age range of 25 to 64 years by 2050, although this figure will be roughly 20% lower than that of men.

The report emphasizes the urgent need for public policies that promote labor inclusion and gender equality to address these demographic challenges in the region.

Source: United Nations

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