The challenge of economic growth with employment creation cannot be analyzed without addressing the employability issue. Productivity and competitiveness may increase only by providing training and formation based on demand.

By Martín Padulla

The 103 meeting of ILO’s International Labour Convention (Genève) has ended under presidency of the Argentinian Daniel Funes de Rioja and with it, has been left an important schedule on issues such as forced labour, labour migrations, informality and quality employment investment. The most important matter, underlining these issues is economic growth without employment creation.

The Labour work cannot be reduced to the world of Employment. All indicators seem to be taking us to a Labour world made of employees and micro-entrepreneurs; a more dynamic labour market, with smaller and even micro-companies formed by independent workers who add value through knowledge and specialized skills.

In this context, little was discussed during the Conference about a crucial issue: employability. Though there are Employment Observatories, there are no Employment and Employability Observatories, studies that clearly show the supply and demand dynamic.

In Latin America, an important percentage of young people entering the labour market do not posses the competences demanded by such market. Countries, regions, provinces or departments and cities are clear as regards jobs created, but tend to be confusing on the diagnose of the lack of skills required to grow.

When talking about employability, we are referring to every skill, attitude, knowledge, experience and value we own and put under the service of the organization or institution where we develop our careers. Is the capacity an individual or a group of individuals have of obtaining the greatest profit from their profiles. It is related to the needs a market has. Needs that tend to change and that differ according to geography, natural resources and the degree of development of a country or region.

In those countries which have managed to lower the unemployment rate to a single digit, we usually them mention the productivity issue A worker or a micro-entrepreneur is productive when with a determined amount of resources during a limited period of time, obtains the maximum performance. Machines and equipment’s productivity is based on their technical characteristics. Among people, technical skills are not sufficient. Besides updated hard skills, it is necessary to work on soft skills, which are becoming more and more important in the changing, dynamic and flexible markets. Is it possible to be productive without those skills? Is it viable to think strategies to increase productivity without thinking concrete measures to improve employability?

Both companies and countries aim to become more and more competitive. Competitiveness is the capacity a company or country has to obtain profit within the market in comparison to its’ competitors. Competitiveness depends on the relationship between value and amount of product or service offered and the supplies needed to obtain it (productivity) and the productivity of its competitors in the market. In a global market, is it necessary to use production techniques more efficient than those used by competitors, more amount and/or quality of products or services, or to have lower production costs per unit produced? May this be achieved without having productivity? Is it possible to reach competitiveness without having the competences demanded by the challenge? Is it possible that in order to improve competitiveness in Latin America we need to work on the employability of our people? Are we facing the chance of adding inclusion to growth?

Maybe the time has come to look at the labour market, understand that work formation and education as well as encouraging the entrepreneur spirit with updated and innovative tools, are the key to reach social and economic progress.

About Martin Padulla

Managing Director of staffingamericalatina. Martin Padulla is Sociologist (USAL), MBA (UCA) and labour markets expert. He published “Flexible Work in South America” and “Regulatory framework for private employment agencies in Latin America” two books about the new realities of work in Latin America.

mpadulla@staffingamericalatina.com

About staffingamericalatina

It is the unique independent digital media specialized in Latin American´s labour markets.

Produce and spread contents, researches and developments about issues such us Employability, Youth Employment, Training for Employment, Decent Work, Private Employment Agencies, Active policies for employment, Teleworking, Public and private actions for the creation of decent work, Green Jobs and Corporate Social Responsibility.

It is the meeting point for companies, providers, candidates, service´s companies, academics and independent professionals of Latin America.

Follow staffingamericalatina on Twitter: @staffingal