Latin America must quickly decide whether it wants to keep on debating about its past or generate consensus on the agenda of the future. The future of work is the future of our societies and we can only access the opportunity of development by focusing on priorities.  

By Martín Padulla para staffingamericalatina

For a few years now, I have had the pleasure of interacting with the main referents of the education and labor world of the eight main Latin American economies. Besides enjoying the amazing culture of our countries, tasting local delicacies and strengthening bonds of friendship, I always have the feeling that our countries tend to be caught in debates linked to our past or our history, and we are not capable of channeling our energy, knowledge and creativity into issues that are transcending for our future. But, what are those issues?

I am certain that the region has only one chance of achieving development. Therefore, it seems reasonable to channel every initiative towards that opportunity. What is it about? Basically, it is about seizing the window of demographic opportunity, creating a proper business environment for companies 4.0 and a pool of pertinent talent to drive those companies. Companies 4.0 and talent 4.0.

We clearly have major challenges to solve, and the way to do it is by establishing an agenda that, in my opinion, should include five interrelated priorities:

To transform every young NEET into ETT

The region has over 20 million young persons who are neither in employment, education nor training. We need to generate different stimulus to reduce that figure and increase the number of youngsters who study and work. We need to include a larger share of young persons into the knowledge society. Learning to unlearn in order to relearn is the only possible way to access the jobs of the future. We must

To recalculate the concept of education

Our education systems must connect quickly to a less individualistic and more collaborative reality, based on team work and common goals. We must turn into a less encyclopedic model and develop more experimental dynamics, which may connect with emotions and create memorable experiences.

A system that encourages students to make of good questions, instead of repeating pre-established answers. Our children and youth must learn to live together with uncertainty, to develop socioemotional skills. We need to strengthen knowledge in science, technology, engineering, and mathematics. We must erase the frontiers between theory and practice.

Training and education for labor

Recalculating the concept of education implies consolidating the concept of life-long learning, not as the accumulation of knowledge, but as learning, unlearning and relearning process connected to the development and convergence of different technologies that directly impact the labor world.

If technological convergence blurs the frontiers among what is biological, physical and digital, we need to blur the frontier between education and labor. Dual training, apprenticeships, professional practices, and every form of learning connected to socioproductive needs, are key tools for including young people in an increasingly dynamic labor market.

Labor market’s formality

Latin America has an average informality rate of 40%. In the region, undeclared employment affects over 130 million people. Around 73% of the lower income population work under informal conditions; while two out of three of the wealthier population, have a formal job. For years, Guatemala (73% informality rate) and Honduras (72%) have had over 70% of their workers under informal conditions. Panama (41%), Ecuador (49%), Mexico (53%), Colombia (54%), Paraguay (63%) and Peru (64%). Argentina and Brazil have rates just below the average, with 30% and 33% respectively. Too many people who cannot plan a future.

If we analyze the situation of young people, we shall learn that six out of ten have an informal job. We need to create more dynamic, formal and inclusive labor markets. The most developed labor markets have from 35 to 40 different kinds of labor contracts and are willing to regulated new working modes to preserve a proper regulatory framework for workers.

We cannot cling to a model of labor that has nothing to do with the new business models being developed in the knowledge economy or in the collaborative economy. It is key to ensure decent work for youth. We must recalculate the concept of labor to transform it into 21^st century labor, into work 4.0.

The labor market’s modernization, focusing on the person and his/her employability.

There is a pressing need for more dynamic labor markets, which may enable easy access to different forms of labor that shall coexist with a strong, efficient, and permanently examined and updated labor training system. We need a labor market 4.0. that attracts the jobs of the future and is constantly reinvented.

It is time to start working in a methodic and systematic way on these priorities. There are very interesting initiatives to be inspired by. Around 845 companies in the entire world that, discouraged by the lack of update of education system, have created their own training centers; there are initiatives such as GAN 4 Youth that seeks to create “jobs for youth and skills for business”; strategic alliances have been created in several countries between the public and the private employment services, to achieve greater efficiency in the development of skills based on demand and employing young and vulnerable people; several countries are adapting the German or Switzerland dual training system to their own cultures and regulatory frameworks.

Latin America needs their working age population to work. In order to do this, it is key to strengthen, provide knowledge, and skills to these people. They expect that those who are leading the debate stop once and for all to look through the rear-view mirror and start driving towards the future.

About Martin Padulla

Founder and 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.

Follow Martín Padulla on Twitter: @MartinPadulla

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.

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