By Denis Pennel, special for staffingamericalatina

Last month, the World Economic Forum met in Panama bringing together more than 650 leaders from industry, government, academia and civil society; including several heads of state and government. The theme of the event was ‘Opening Pathways for Shared Progress’, and it sought to examine the issues facing the labour market in the region. Throughout the event it became clear that Latin American economies are moving at widely different paces and diversifying their economies must become a top priority.

The economy is growing, but volatile. One key shift is the transition towards a knowledge-based economy. This is changing which industries the labour is needed for and employers can struggle to fill open positions quickly. The labour force needs to be retrained and upskilled to fill the talent gaps appearing. If the region can tackle this transition and the fluctuations in the economy then the labour force can contribute to increased productivity and continue to grow the economy. Obviously, private employment services have an important role to play in matching labour supply and demand, as well as in training and upskilling workers. This offers huge opportunities for our industry.

It is no surprise to me that tackling informal employment was high on the agenda at WEF Panama. The only way to fully support growth and to utilise the labour force effectively is to address the issue of informal employment. A recent report from the ILO shows almost six in ten young people who work in Latin America are in informal employment, which generally involves low wages, job insecurity and lack of protection and rights. In addition, Latin America’s SMEs employ 67% of workers but to drive economic growth they must be encouraged to reduce their use of informal contracts.

This is a slow process but one that Ciett is actively involved in overcoming. I have discussed the International Labour Organisation’s (ILO) Convention no. 181 in this column before and I cannot stress enough how important this is. The private employment services (PrES) industry are perfectly placed to promote formal employment and its benefits, allowing the region to realize the potential of its workforce, prevent the insecurity of informal employment and grow the economy through job creation. Ratifying Convention no. 181 is the best way to allow PrES to do this.

Events such as WEF Panama are important in this process. It was discussed that emphasis must be placed on upskilling the workforce with governments, education providers and businesses collaborating to promote formal work. Alongside this, governments must work to eradicate informal employment through legislation and policing. In Panama leaders openly discussed their commitment to collaborate to do this – a key step towards productive and decisive action.

I believe the theme ‘Opening Pathways for Shared Progress’ is an ideal consideration for Latin America. The pathways to be opened are clear to me; better functioning labour markets, regulation to promote growth, job creation and worker security and support for businesses to thrive. Shared progress is also clear; countries must work together to improve their labour offerings in the same way that businesses, governments and academia must collaborate to succeed.

‘Shared Progress’ is something that Latin America must not just consider but actively work towards. Latin America can continue to grow and improve its global clout if collaboration is top of the agenda.

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About Denis Pennel

Managing Director of Ciett and Eurociett, Denis Pennel is a labour markets expert with deep knowledge and years of experience relating to employment at global and EU levels. He just published “Travailler pour soi”, a book about the new realities of work.

Follow Denis on Twitter @PennelDenis

About Ciett, www.ciett.org

As the International Confederation of Private Employment Agencies, Ciett is the authoritative voice representing the interests of agency work businesses. Founded in 1967, Ciett consists of 48 national federations of private employment agencies and seven of the largest staffing companies worldwide. Its main objectives are twofold: to help its members conduct their businesses in a legal and regulatory environment that is positive and supportive; to gain recognition for the positive contribution the industry brings to better functioning labour markets.

Follow Ciett on Twitter @ciett_waytowork