Latin America has a major social debt. Training based on demand is key to reduce poverty. Working transversally for ...
Latin America has a major social debt. Training based on demand is key to reduce poverty. Working transversally for inclusion is an urgent matter.
By Martín Padulla for staffingamericalatina
A new year begins and it is important for us to reflect on some important issues for our region.
Poverty has not been reduced for three years and it is stuck at 28%. Around 220 million Latin-Americans are “vulnerable”. During 2004 to 2012 they escaped from poverty, but they are no part of the middle class yet. There daily income is around 4 to 10 dollars and half of them have unstable jobs. The risk they have of falling back into poverty is high. It might even be a reality if the analysis was less technical or statistical.
Unemployment and informality keep on growing. The unemployment rate went from 6.2% in 2014 to 6.7% in 2015 and it is expected to grow to 6.9% in 2016. The situation will be more difficult for women (8.2%) and even worse for young people (15.3%).
Bernardo Kliksberg, Main Consultant of FAO Direction for Latin America states that “it is vital to fortify vulnerable people and not let them fall back into poverty. If we add vulnerable people to poor people, we come up to 2 out of 3 persons in this condition in the region”.
Working on the skills gap with a clear focus on the labour market of every regional economy becomes a must. This is not possible without the articulation of public-private initiatives.
40% of Latin American youth do not graduate from high school. When we analyse the poorest segment of the population (20%) the rate goes up to 66%. One of the main challenges our countries face to achieve development is improving the levels of secondary school graduation and tackling the extremely high levels of school drop outs. Even if we improve these two variables, we need a permanently updated picture of the skills that local labour markets demand in order to provide citizens the skills that shall enable them to develop and prosperously live in society.
The combination of assets and training based on demand shows several cases of success in countries such as Peru. Different projects, such as the ones developed by the IDB, show that when vulnerable groups are given assets, for instance poor vulnerable mothers who are given land to farm, credits for microbusinesses, machines to produce, and proper training, the results obtained are amazing.
ECLAC considers that “reducing inequality is a key condition to tackle poverty”. Inequality in Latin America is 30% higher than the world average.
Three steps must be urgently taken:
This virtuous circle shall result in an increase of human capital that reduces inequalities and attracts new investments. The human capital increase must also include entrepreneurs, as they do not only need financing, tax incentives and access to technology, but also training to create employment, grow and be more productive.
Can this be achieved? It definitely can. We just need to align political will, technical knowledge and coordinated, methodical and systematic work.
This is my wish for the year that has just begun.
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
