By Denis Pennel

I recently spoke at the ILO Symposium for Employers on the Future of Work in a panel titled “The changing world of work: Seizing opportunities and resolving concerns”. The panel brought to light how our world has changed dramatically over the past decades but employment relationships have often remained traditional; until now.

The traditional one-size-fits-all employment model (where workers are mostly permanent, full time and directly employed by their company) is beginning to morph and change as individuals want to customise their employment similar to how they can customise everything from clothes to toys. Simultaneously, employers are functioning in a fast-paced, technology and innovation driven business landscape and the rigid model no longer suits their need for agility, flexibility and inability to promise a “job for life”. As this becomes more complex and diverse, the necessity is increasing for a third party to guide individuals on their career journeys and act as the vital intermediary between employer and employee.

In Latin America the picture is more complex still. Antiquated regulation and informal employment is preventing countries from dealing with this ever-changing business landscape as well as addressing unemployment (between 6.2% and 6.3% in the region according to ECLAC[1]) and skills gaps. It is no secret that the gap between supply and demand of skilled labour is widening, and many countries in Latin America also face uncertain and fluctuating economies. They need ready skilled, “work ready” job candidates and individuals are struggling to keep pace.

In my opinion the private employment services industry (PrES) is ideally positioned to be the necessary connector to match supply and demand; alleviating skills mismatches through training, and working closely with businesses and government to develop the skills that will help economies to flourish in the future. There is a lot of growth potential in Latin America; agency work still only constitutes 0.4% of the working population in Argentina and Chile, 0.6% in Peru, and 1.1% in Brazil.

Here at Ciett we believe that there is a person for every job, and a job for every person. This mutual relationship allows freedom on both sides to work towards what is best for their career, or their business.  PrES matches people with organisations; developing the employability of individuals and ensuring that organisations have the right skills, and top talent, to succeed. However, PrES in Latin America is not adequately regulated, and the correct environment must be put in place so that PrES can contribute actively to better functioning labour markets, for the benefit of employees, employers and economies. At the ILO Symposium I called on governments globally to put adequate regulation in place, starting specifically by ratifying and implementing ILO Convention 181. In Latin America only Uruguay, Panama and Surinam have done so.

I believe that a fundamental shift in the way that we view employment is necessary to ensure the sustainability of the world’s workforce and to fully realise the potential of the changing world of work. There is a long way to go until Latin America’s labour market is sustainable. But this goal is not unreachable. By recognising the need for a regulated PrES industry and putting the correct regulation in place Latin America can begin to prepare for the fast approaching future of work.

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