1 /27 JOBS Regional Jobs Update: Insights from Labor Force Surveys Latin America and the Caribbean May 20251 Poverty and Equity Global Practice Key Jobs drive poverty reduction in Latin America and the Caribbean (LAC), accounting for two-thirds of the decline during the last period of rapid progress (2009-14). FINDINGS Over the past decade LAC generated about 27 million net new jobs—with a jobs growth rate on par with those of other world regions. Most of the job creation was observed in larger firms (with more than 5 employees), urban centers, the commerce and hospitality sectors, and among skilled workers. Youth unemployment fell by more than 5 percentage points since 2016, primarily driven by growth in salaried jobs in the private sector. Despite an increase in wage employment, the new jobs were disproportionately informal arrangements without pension or other labor benefits. Declining earnings returns to education contributed to modest labor earnings growth at 0.7 percent annually since 2016 Also from 2016 on, the region experienced limited productivity growth and structural transformation, indicating stagnant labor demand. The labor market is expected to become less dynamic in 2025 based on recently downgraded economic growth projections 1 This brief summarizes the main trends related to labor markets in Latin America and the Caribbean (LAC) in the period 2016–24, using harmonized labor surveys from the Labor Database for Latin American and the Caribbean (LABLAC) created by the World Bank and the Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS; Center for Distributive, Labor and Social Studies). It also compares LAC against other regions using data from the Global Labor Database (GLD) and the International Labour Organization (ILO). This brief was produced by the Poverty and Equity Global Practice in the Latin America and Caribbean Region of the World Bank. The core team included Karen Barreto Herrera, Luis Eduardo Castellanos Rodriguez, Catalina García García, Diana Sanchez Castro, and Camila Monzon, under the leadership of Hernan Winkler and the guidance of Carlos Rodriguez Castelan. The team thanks the LinkedIn Economic Graph Research Institute for sharing the latest LinkedIn data refresh and feedback, and Bill Maloney, William Wiseman, Josefina Posadas, Yuri Yamashita and the staff from the LAC Poverty team for valuable comments. Contact: lac_stats@worldbank.org. JOBS 2 /27 1. Trends and projections Jobs constitute the primary mechanism for poverty a quarterly basis since Q3 2023. Labor earnings have reduction globally (Inchauste et al. 2014). In Latin consistently outperformed GDP growth since mid-2022. America and the Caribbean (LAC), the 2009–14 period— Yet this impressive earnings growth tells a different the last episode of rapid poverty reduction in the recovery story than does employment. While jobs region—saw employment creation and earnings growth bounced back in 2021, earnings did not experience the accounting for approximately two-thirds of poverty same sharp rebound, only climbing back to prepandemic reduction. More recently, labor market performance was levels gradually. instrumental in reducing poverty rates to prepandemic Looking ahead to 2025, GDP growth is projected levels (World Bank 2024). These results reflect the to decline from 2.2 to 2.1 percent (from 2.1 to 1.9 importance of labor income, as it comprises 57–68 percent among countries with labor data), and percent of total household revenue across all income LAC remains poised to be the world’s slowest- segments.2 growing region (World Bank 2025b). Based on current The performance of labor markets in the region has projections, job creation is expected to decline slightly followed distinct patterns in recent years. Since 2016, to 1.6 percent year-to-year (down from about 2 percent the labor market performance of LAC has mirrored the in 2024), and labor earnings growth is expected to region’s business cycle (figure 1). After the postpandemic decelerate to 1.5 percent (down from an average of surge, employment growth has stabilized at historical about 4 percent in early 2024). rates of approximately 2 percent year-over-year on Figure 1 GDP, Job Creation, and Labor Earnings (Year-to-Year Growth) in Latin America and Caribbean, 2017–24 (Q2) 25 20 Year-to-Year growth (percent) 15 10 5 2.1 1.9 1.6 0 1.5 -5 -10 -15 -20 2017-1 2017-2 2017-3 2017-4 2018-1 2018-2 2018-3 2018-4 2019-1 2019-2 2019-3 2019-4 2020-1 2020-2 2020-3 2020-4 2021-1 2021-2 2021-3 2021-4 2022-1 2022-2 2022-3 2022-4 2023-1 2023-2 2023-3 2023-4 2024-1 2024-2 2024 2025 Real GDP (USD 2017 PPP) Job Creation Earnings (USD 2017 PPP) Sources: An elaboration based on IMF data (historical quarterly GDP in USD 2017 PPP), the World Bank Spring 2025 Macro and Poverty Outlook (for GDP estimates and projections for 2024 and 2025), and on LABLAC (for the numbers of jobs and average earnings per worker [USD 2017 PPP]). Note: For the period of study, comparable survey years for LAC were used (see table A5). Earnings growth and job creation are based on the average total labor income per worker and total number of people employed, respectively. LAC earnings are the weighted average (using total employment) of country-level figures. GDP real growth covers the same countries included in the labor data. The 2025 projections for earnings growth and job creation are based on a linear model using country-quarter-level GDP growth and quarter fixed-effects as independent variables. 2 See LAC Equity Lab: Income Inequality - Composition by Quintile 3 /27 Box 1. High-Frequency Employment Trends Using Data from LinkedIn LAC’s LinkedIn Hiring Rate (LHR) mirrors the job creation Sub-Saharan Africa (SAR). This contradicts LFS data where patterns captured by labor force surveys (LFS): a crash LAC, ECA and high-income economies saw employment during the pandemic, a surge in 2021, then a post-2023 gains outpacing those of other regions (except SAR). The plateau (figure B1a). But unlike the narrative told by the 3 discrepancy suggests that while LAC created more jobs LFS figures, LAC’s 2024–25 LHR remained stuck below overall, it struggled in the higher-skilled, tech-forward 2017 levels as of February 2025, signaling an incomplete sectors captured by LinkedIn data. recovery. LAC’s worst-performing sectors in terms of LHR in LAC is not the only region facing this challenge—in early 2025 (with respect to the same months of 2024) February 2025 all global regions showed hiring growth were consumer services, education, administrative rates below 2017 benchmarks (figure B1b). At that point support, and manufacturing. In contrast, wholesale, LAC was outperforming Europe and Central Asia (ECA) transportation and logistics boasted the strongest hiring and high-income countries, but was trailing East Asia and rates, exceeding 2024 averages.4 the Pacific (EAP), Middle East and North Africa (MNA), and Figure B1. LHRs in LAC and Other Regions, 2017–25 (February) (Year-to-Year Changes) (a) Average LHR by LAC Subregion (Year-to-Year Changes), (b) Average LHR by Region in 2017 and 2024–25 2017–25 (Year-to-Year Changes) 3.50 Europe and 0.08 3.00 Central Asia -0.18 2.50 High income 0.06 -0.16 2.00 Latin America 0.08 and the Caribbean -0.14 Change (p.p.) 1.50 Sub-Saharan 0.01 Africa -0.11 1.00 East Asia 0.01 0.50 and Pacific -0.09 0.00 Middle East 0.11 and North Africa -0.09 -0.50 South Asia 0.1 -0.06 -1.00 2017 2018 2019 2020 2021 2022 2023 2024 2025 -0.20 -0.15 -0.10 -0.05 0.00 0.05 0.10 0.15 Change (p.p.) Brazil Mexico Andean Region Colombia Central America Southern Cone January-December 2017 March 2024-February 2025 Source: Elaborations based on data from LinkedIn Economic Graph. Note: The LHR is the number of LinkedIn members who added a new employer to their profile in the same month the new job began, divided by the total number of LinkedIn members in that country. The LHR is a monthly year-to-year change. Regional Aggregate: Country group values are arithmetic means of country-level and month-level LHR. Country groupings exclude high-income countries (except for LAC and high-income). Regional and income country classifications follow the World Bank. 3 LinkedIn data offers complementary insights to traditional Labor Force Surveys (LFSs) for labor market analyses. While LFSs provide statistically rigorous, nationally representative samples with consistent methodologies over time, they typically become available with lags and often lack granularity on professional skill demands and emerging occupations. In contrast, LinkedIn’s data delivers real-time visibility into hiring patterns, helping detect early trends before they materialize in official statistics. However, the data have important limitations – they are a non-random sample with overrepresentation of higher-skilled professionals and highly digitalized industries, and they have uneven coverage across countries. Nevertheless, when used together, these data sources provide a more comprehensive picture. 4 In the LinkedIn data, these are typically higher-skilled positions even if some these sectors are not considered high-skilled. 4 /27 The pace of job creation varied greatly within the Uruguay recorded net job losses during this period, to LAC region. Between 2016 and 2024, Bolivia led the some extent reflecting its declining population. region with job creation with a rate of 4.4 percent Despite having the lowest economic growth among annually— partly powered by its fast-growing working global regions since 2015, LAC has maintained age population (figure 2). Paraguay and Argentina also employment growth comparable to countries in performed above the regional average with rates of 3.8 other regions. This disconnect suggests that LAC is and 2 percent, respectively. In contrast, Colombia and creating jobs without improving productivity, which may Costa Rica demonstrated considerably slower job growth explain the region’s persistently low job quality indicators with annual rates of 1.1 and 1.2 percent, respectively. (discussed in later sections). Figure 2 Job Creation, LAC vs. Peer Countries, 2016 vs. 2024 (annualized growth rate, percent) LAC Non - LAC 8.0 6.0 Annualized growth (percent) 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 Paraguay El Salvador Bolivia Argentina Mexico Dominican Republic Chile Peru LAC Ecuador Brazil Costa Rica Colombia Uruguay India Gambia Pakistan Indonesia Bangladesh Philippines Rwanda Armenia Zambia Tunisia Turkey Sri Lanka Mongolia Thailand Tanzania South Africa Ethiopia Georgia 2016-2024 2019-2024 2016-2019 Source: An elaboration based on data from LABLAC for LAC countries and on the Global Labor Database (GLD) for non-LAC countries. Note: The variation in time frames reflects the need to use comparable survey years for LAC (see tables A5 and A6). Annualized changes are from the first to the last period. The LAC average is the aggregated job creation rate for countries with comparable surveys in 2016 and 2024. 5 /27 The LAC region has observed a process of human groups. Conversely, individuals without a high school capital accumulation over recent decades that diploma experienced job declines at a rate of 1.3 percent has been linked to its labor force’s taking on a annually, which exceeded their working-age population more educated profile. Between 2016 and 2024, decline by 0.3 percentage points (p.p.). This disparity the population ages 15 and over with at least tertiary has resulted in decreased employment rates for this education grew at a remarkable annual rate of 5.1 demographic group. With some nuances, these patterns percent (figure 3). In contrast, those with just a high are observed in every country in the region (table A1).5 school diploma increased at a lower rate of 2.8 percent Despite these achievements, LAC’s education annually, while the population without completed high systems are not necessarily delivering job-ready school education declined. skills. Three out of four 15-year-olds fail basic math This educational transformation of the labor force proficiency and over half cannot read adequately.6 Most was mirrored in regional employment patterns. countries showed no improvement in these critical Job growth was consistently stronger among more- metrics (Saavedra and Regalia 2023). In addition, 22.8 educated segments of the workforce. Employment percent of firms in LAC identify an inadequately educated expansion slightly outpaced working-age population workforce as a major or very severe constraint, above the growth for those with higher-education credentials, global average of 19 percent.7 resulting in improved employment rates for these Figure 3 Working-Age Population and Total Employment in LAC by Education Level, 2016–24 Annualized Growth (percent) 5.2 5.0 5.1 4.0 3.2 Annualized growth (percent) 3.0 2.8 2.0 1.6 1.0 1.1 0.0 -1.0 -1.0 - 1.3 -2.0 Total Low Middle High Educational Attainment Working Age Population People Employed Source: An elaboration based on data from LABLAC for LAC countries with comparable data in 2016 and 2024 (see table A5). Note: For the period of study, comparable survey years for LAC were used (see table A5). Annualized changes from the first to the last period. The LAC average is the aggregated job creation rate for countries with comparable surveys in 2016 and 2024. Following the ILO definition, low-skilled workers are defined as those who have not completed secondary education, middle-skilled workers are those with complete secondary but not tertiary education, and high-skilled workers are those who have completed tertiary education. 5 However, high-skilled employment growth was lower than middle-skilled average growth in Paraguay and the Dominican Republic, and middle-skilled employment growth was lower than low-skilled employment growth in Peru and El Salvador. 6 As a reference, less than 30 percent of Vietnamese students are below basic proficiency levels in math and reading (OECD 2023). 7 See World Bank Enterprise Surveys 6 /27 Between 2016 and 2024, LAC generated about 27 million versus 7.4 million. The region added 1.6 million million net new jobs. The employment landscape 8 new employers/entrepreneurs, while unpaid work transformed across labor market segments (figure 4). declined by 900,000 jobs. Retail and hospitality surged (+7.9 million jobs), while Women secured 54 percent of the new positions, education, health and personal services expanded corresponding to 14.5 million jobs. Urban centers robustly (+7.3 million), together accounting for over dominated job growth with 25.9 million new positions, half of all new positions. Meanwhile, the primary sector while rural areas added just 800,000 jobs. Prime-age contracted, shedding more than 1.2 million jobs, while workers (25–44) secured over one-third of the new manufacturing added 2.9 million positions. When positions (10.7 million), while youth employment grew job creation is disaggregated by company size, larger marginally (+648,000 jobs). Workers ages 64 and older firms (more than 5 employees) led job creation with claimed 2.7 million new positions. Educational attainment 11.1 million new net positions, while small enterprises significantly influenced employment gains: high school contributed 7.9 million. The public sector expanded by graduates filled 18.8 million new positions, while those 3.4 million jobs.9 with postsecondary education secured 15.2 million jobs. The growth in new salaried positions was more than double the increase in jobs in self-employment, 18.6 Figure 4 Numbers of Net New Jobs Created in LAC by Category, 2016–24 40,000,000 35,000,000 Public Administration 30,000,000 Employer and Defense 15 - 24 Rural High 25,000,000 64+ Construction Industry Self-employed 20,000,000 Men 55 - 64 Public Electricity, Gas, Water, Transport, Communications Banks, Finance, Insurance, 15,000,000 45- 54 Small Professional Services Urban Education, Health, 10,000,000 Middle Employee Personal Services Women 5,000,000 25 - 44 Big Retail and Wholesale Trade, Restaurants, Hotels, Repairs 0 Domestic Service Low Unpaid workers Primary Activities -5,000,000 -10,000,000 Gender Age Firm Size Skill level Labor Status Urban Sector Source: An elaboration based on data from LABLAC for Argentina, Bolivia, Brazil, Chile, Costa Rica, the Dominican Republic, Mexico, Peru, and El Salvador. Note: The figure presents the absolute changes in the numbers of employed people between 2024 and 2016. While all the bars should in theory have the same height, some are shorter due to missing values in the categorical classification (most notably firm type and size). 8 Using the sample of countries with comparable data (Argentina, Bolivia, Brazil, Chile, Costa Rica, Dominican Republic, El Salvador, Mexico and Peru). According to ILO Modelled Estimates for the whole LAC region, 28.3 million jobs were created. 9 The public sector concentrates between 4 percent (Colombia) and 17 percent (Argentina) of total employment in LAC. JOBS 7 /27 2. Labor Market Structure LAC’s employment landscape during the period of Youth unemployment fell over 5.4 p.p. from 2016 study showed mixed gains from 2016 on. The working- on, yet remained high at 14 percent in 2024—more age employment rate climbed 1.3 p.p. to 58.9 percent than double the overall unemployment rate. More in 2024, while unemployment dropped from 8.5 to 6.2 concerning is LAC’s Not in Employment, Education, percent (figure 5). Some of the unemployment decline or Training (NEET) challenge: nearly one in five young stemmed from a slight drop in labor force participation people were in this category, effectively not building skills (LFP) (-0.3 p.p.). Despite the improvement in employment through either work or schooling. While slightly below and unemployment rates with respect to prepandemic the global average of 20.4 percent, this rate significantly levels, LFP still lagged 0.9 p.p. below its prepandemic exceeded the average of both high-income countries benchmark as of 2024. (10.4 percent) and upper-middle-income countries (16.6 percent) (ILO 2024). Figure 5 Employment, LFP, and Unemployment Rates in the LAC Region, 2016–24 (percentage) 80.0 30.0 Unemployment, youth unemployment and NEET rates (percentage) 75.0 70.0 25.0 LFP and employment rates (percentage) 65.0 60.0 20.0 55.0 50.0 15.0 45.0 40.0 10.0 35.0 30.0 5.0 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 2020-Q3 2020-Q4 2021-Q1 2021-Q2 2021-Q3 2021-Q4 2022-Q1 2022-Q2 2022-Q3 2022-Q4 2023-Q1 2023-Q2 2023-Q3 2023-Q4 2024-Q1 2024-Q2 LFP (LAC) Employment (LAC) Unemployment (LAC) Youth Unemployment (LAC) NEET (LAC) Source: An elaboration based on data from LABLAC for LAC countries with comparable data across every quarter of the sample (see table A5). Peru, Chile, and Bolivia were excluded from the NEET due to insufficient data for indicator construction. Note: LAC aggregates are the weighted averages of country-level outcomes. 8 /27 Employment rates strengthened or held steady Youth employment rates rose despite minimal or across most socioeconomic segments during the negative job creation rates (below 0.4 percent), 2016–24 period (figure 6). Women emerged as clear primarily due to demographic contraction within winners, outpacing men in job growth and achieving this cohort. Seniors (65+) faced an employment rate a substantial 2.3 p.p. employment rate increase. Their decline despite robust annual job expansion of about employment surge was not limited to specific areas 6 percent or more, significant growth that nevertheless of the labor market—across most countries, women’s failed to match the rapid expansion of the region’s older employment numbers grew throughout a range of population. Most concerning is the situation of workers economic sectors, frequently surpassing men’s gains with low levels of educational attainment, who suffered (tables A3 and A4). a 2.7 p.p. employment rate drop, driven by actual job decline within this vulnerable segment. Figure 6 Employment Rates and Job Growth in LAC by Gender, Age, and Skill Level, 2016–24 Employment rates by group in LAC 90.0 76.7 78.1 80.0 74.0 70.7 70.0 64.8 58.9 56.0 60.0 percentage 48.1 46.3 50.0 42.0 40.0 30.0 19.9 20.0 10.0 0.0 Total Male Female 15-24 25-44 45-54 55-64 65+ Low Middle High 2016 2019 2023 2024 Annualized employment growth 7.0 6.6 6.0 5.7 Annualized growth (percent) 5.0 3.9 3.7 4.0 3.1 3.0 2.5 2.2 2.1 2.0 1.6 1.0 0.4 0.0 -1.0 -1.2 -2.0 Total Male Female 15-24 25-44 45-54 55-64 65+ Low Middle High Gender Age Skill level 2016-2019 2023-2024 Source: An elaboration based on data from LABLAC for LAC countries with comparable data in 2016 and 2024 (see table A5). Note: LAC aggregates are the weighted averages of country-level outcomes. 9 /27 Between 2016 and 2024, the increase in the next sections, whereas El Salvador and the Dominican employment-to-population ratio in LAC matched Republic did, adding jobs with better conditions. On the that of ECA and was higher than that of all other downside, two LAC countries saw employment rates fall, world regions except South Asia and high-income with Costa Rica and Uruguay experiencing declines of countries. Bolivia led with a 12.1 p.p. surge, while 0.5 and 1.1 p.p., respectively. In all LAC countries except Argentina followed with a 4.4 p.p. jump. However, Costa Rica, employment rates returned to or surpassed neither country was able to translate these gains into prepandemic levels. an improvement in job quality as described in the Figure 7 Employment Rate Changes in LAC Countries and LAC vs. Other Regions, 2016 vs. 2024 (p.p.) 14.0 12.0 10.0 8.0 6.0 Change (p.p.) 4.0 2.0 0.0 -2.0 -4.0 -6.0 LAC El Salvador Ecuador Bolivia Argentina South Asia Dominican Republic Brazil Chile High Income Colombia Mexico Europe & Central Asia Paraguay Peru Sub-Saharan Africa Costa Rica Uruguay Middle East & North Africa East Asia & Pacific 2016-2024 2016-2019 2019-2024 Source: An elaboration based on data from LABLAC (for LAC countries) and on ILOSTAT (statistical database of the International Labour Organization) modeled estimates (for regions and high-income countries except for LAC). Note: Geographic regions (except LAC) exclude high-income countries. The years used were those closest to the ones in the legend and those that were comparable (see table A5). LAC aggregate is weighted averages of country-level outcomes. 10 /27 Labor informality remains a significant challenge for grew across most countries (especially Paraguay, the LAC region. Using a productivity-based approach, 10 Bolivia, and Ecuador), most of these positions lacked with informality defined as being salaried in microfirms, formal benefits. The productivity-based improvement unskilled self-employed, or an unpaid family worker, LAC stems primarily from declining shares of unskilled self- achieved improvements between 2016 and 2024, with employment and unpaid family work, counterbalanced informality rates declining 2.3 p.p. to 42.1 percent of by increases in skilled self-employment and, to a lesser workers (figure 8). extent, employment in larger firms. Simultaneously, salaried work without pension benefits has increased— The regional figures, however, mask country- confirming that formalization remains incomplete level disparities, with Chile and Costa Rica having despite structural shifts in employment composition. relatively low informality rates (27 and 34 percent, respectively) while Peru and Bolivia show rates Beyond salaried employment, regional job-quality exceeding 60 percent. The most notable reductions metrics show that more jobs were created, but occurred in Costa Rica (-4.6 p.p.), Chile (-3.3 p.p.), and without an increase in the proportion of better- Colombia (-4.2 p.p.). In Bolivia and Peru, not only were quality employment. Underemployment, defined as the informality rates the highest in the region in 2024, employed persons’ working fewer hours than desired but the rates had increased compared to 2016. who are seeking and available for additional work, remained high at 5 percent in most countries in 2024, In contrast, if the social protection definition of exceeding the averages of both upper-middle-income informality11 is used, informality of wage employees (4.9 percent) and high-income economies (3.2 percent).12 increased 0.6 p.p. in LAC over the period of study, The more comprehensive Job Quality Index (JQI), which reaching 30.5 percent in 2024. This was driven by rises combines four dimensions that characterize a good job in seven LAC countries, including Argentina (3 p.p.), (Brummund et al 2018.), confirms this troubling trend, Bolivia (7.1 p.p.), and Peru (6.9 p.p.) (the countries with with half of the region’s countries for which data are the biggest jumps). available experiencing declining employment quality These divergent measurements reveal the (Barreto Herrera et al. 2024) (figure A1).13 challenging reality that while salaried employment 10 The productivity-based definition considers as informal those workers who have salaried jobs in small firms (with fewer than five employees), are self- employed without education beyond high school, or are unpaid family workers. 11 The social protection definition considers as informal those workers without an old-age pension or health insurance. 12 These rates are the aggregated time-related underemployment rates by sex and age according to ILO modeled estimates (November 2022 – Annual). Underemployed individuals must meet three criteria during the reference period: they must actively desire additional work hours, they must be readily available to undertake these hours within a specified time frame when opportunities arise, and their actual working hours across all employment must fall below a nationally determined threshold. This classification applies to all employed persons meeting these requirements. 13 The JQI considers four characteristics of jobs: decent earnings, benefits, stability and satisfaction. 11 /27 Figure 8 Changes in Informality and Salaried Employment Rates in LAC Countries, 2016 vs. 2024 (p.p.) 8.0 6.0 4.0 Change (p.p.) 2.0 0.0 -2.0 -4.0 -6.0 LAC Peru Paraguay El Salvador Uruguay Ecuador Brazil Mexico Chile Colombia Costa Rica Bolivia Dominican Republic Argentina Informality (productive definition) Informality (social protection definition) Wage employment Source: An elaboration based on data from LABLAC for countries with comparable data in 2016 and 2024 (see table A5). Note: Productivity-based informality is the employment share of unpaid family workers, unskilled self-employment, and salaried workers in small firms; wage employment is the share of salaried employees in total employment; and social protection-based informality captures salaried employees without employer-provided pension or health insurance benefits, as share of salaried employment. LAC aggregate is the weighted averages of country-level outcomes. JOBS 12 /27 3. Labor Incomes In the 2016–19 prepandemic period, labor market The post pandemic recovery was accompanied by incomes exhibited limited gains with an annualized labor income gains. In 2024, earnings rose by at least growth of 0.3 percent (figure 9). Income growth varied 3 percent across most socioeconomic groups. Workers by educational attainment. While individuals with a with low educational attainment, however, experienced high level of education experienced an average annual lower growth—just 0.8 percent. Despite women’s decline, those with low education levels saw an increase. significant labor market progress, their earnings growth Despite these shifts, schooling wage premiums remained trailed men’s by 0.6 p.p. in 2024. More concerning, significant, as workers with education beyond high school gender earnings disparities remained stagnant from earned 2.9 times more than those without high school 2016 on, with women earning on average about 22 diplomas. percent less than men.14 Figure 9 Earnings Levels and Growth by Socioeconomic Group in LAC, 2016–24 Average total labor income (monthly) 2000.0 1800.0 1667.2 1600.0 1400.0 USD 2017 PPP 1200.0 976.3 990.0 1000.0 882.7 926.1 929.5 923.1 756.6 761.9 800.0 536.5 567.4 600.0 400.0 200.0 0.0 Total Male Female 15-24 25-44 45-54 55-64 65+ Low Middle High 2016 2019 2023 2024 Annual growth (percent) 12.0 10.0 9.6 8.0 6.0 Percent 4.2 4.2 4.5 3.9 4.1 4.0 3.6 3.0 2.3 1.9 2.0 0.8 0.0 -2.0 Total Male Female 15-24 25-44 45-54 55-64 65+ Low Middle High Gender Age Skill level 2016-2019 2023-2024 Source: An elaboration based on data from LABLAC for LAC countries with comparable data in 2016 and 2024 (see table A5). Note: LAC aggregates are the weighted averages of country-level outcomes. 14 This is the unconditional gender gap. 13 /27 Earnings gaps persisted across LAC, shaping the Looking beyond averages reveals critical economic regional labor income distribution. Uruguay, Costa realities. The LAC region is among the most unequal Rica, and Chile led with median earnings 22 to 31 percent regions in the world (Haddad et al. 2024), with labor above the unweighted regional median (figure 10). market disparities as the primary driver (Lustig et Brazil and Mexico trailed in relation to this benchmark, al. 2013). Three major regional economies—Argentina, with median earnings that were 18 and 16 percent, Brazil, and Colombia—were marked by wage inequality respectively, below it. levels in 2024 substantially exceeding those of peers worldwide, leading to their classification as “highly The disparities were more dramatic in the lower unequal” with Gini coefficients exceeding 40 points income tiers. Workers in the 20th percentile in Ecuador (figure A3). and El Salvador earned about one-third of the regional median, whereas top-tier workers (80th percentile) matched the median earnings in Costa Rica. Figure 10 Labor income by country relative to LAC median income, 2024 (LAC median income=100) 250 Labor Income relative to LAC median labor income 236 219 223 200 188 (LAC Median Income =100) 183 160 165 164 156 150 145 134 130 131 127 122 123 104 107 105 100 89 88 93 85 84 86 82 76 77 58 60 50 47 49 52 42 46 46 34 34 35 0 Ecuador El Salvador Chile Colombia Bolivia Mexico Paraguay Peru Dominican Republic Brazil Uruguay Costa Rica Argentina 20th percentile Median 80th percentile Source: An elaboration based on data from LABLAC for countries with comparable data in 2024 (see table A5). Note: Each marker shows the labor income per worker at the 20th, 50th, and 80th percentiles within each country as a ratio of the median labor income per worker for LAC (computed as the simple average of country-level median incomes). Original monetary values are in USD 2017 PPP. Dashed line represents the LAC median value. Sample includes workers ages 15+. 14 /27 Between 2016 and 2024, the wage and earnings low wage growth despite realizing the region’s strongest growth in LAC region outpaced productivity—yet productivity improvements. remained modest. While wages grew annually at 0.6 The wage growth in LAC broadly aligned with global percent and total labor earnings at 0.7 percent, GDP per comparators in similar economic positions. The employed person stagnated (figure 11b). notable distinction was that most of the comparable Most countries followed the expected pattern of economies made higher productivity gains than did higher earnings paired with higher productivity. their LAC counterparts, suggesting a potentially stronger Mexico emerges as an exception, achieving high wage labor demand throughout their economies. At the same and earnings growth despite declining productivity. time, rising minimum wages in some of the largest LAC Rising minimum wages during this period may partly economies during this period, may help explain the gap explain this contradiction (World Bank 2025a). Costa Rica between earnings and productivity growth (Engbom and presents the opposite scenario—stagnant earnings and Moser 2022; World Bank 2025a). Figure 11 Wage, Earnings and Productivity Growth, 2016–24 (USD 2017 PPP) (a) Average Wage and Labor Income Growth (b) Wage Growth vs. Productivity Growth 5.0 6.0 4.0 Colombia Annualized growth (percent) 4.0 Uruguay Mongolia 3.0 Armenia 2.0 Mexico El Salvador Vietnam 2.0 Chile Annualized Wage Growth (percent) Dominican Philippines 0.0 Republic Ecuador 1.0 Indonesia Brazil LAC Costa Rica -2.0 Paraguay Peru (Lima Thailand Turquía 0.0 and Callao) -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 -4.0 Bolivia Georgia India -1.0 -6.0 -2.0 LAC Colombia Mongolia Uruguay Armenia El Salvador Vietnam Mexico Chile Philippines Ecuador Dominican Republic Brazil Indonesia Costa Rica Paraguay Peru (Lima and Callao) Thailand Turkey Bolivia Georgia India Sri Lanka Argentina Sri Lanka -3.0 Argentina -4.0 -5.0 Wage (hourly) Labor income (monthly) Annualized Productivity Growth (percent) Sources: Elaborations based on data from LABLAC (for LAC earnings and wages), ILOSTAT (series: Average monthly earnings of employees by sex) for non- LAC countries, and WDI (GDP per person employed, USD 2021 PPP). In terms of time coverage, the years closest to the ones in the legend and that are comparable were used (see Tables A5 and A6). Note: The LAC aggregate is the weighted average of country-level outcomes. Workers are all those 15 years and older. Earnings include all labor income sources, while wages are the salaries of employees (excludes self-employment and employers). Productivity growth is defined as the annualized GDP per worker growth. 15 /27 Between 2016 and 2024, educational upgrading and effectively neutralized each other when analyzing median increased female LFP emerged as the two principal income growth. Furthermore, the combined impact of labor supply transformations. Yet, these changes changes in educational attainment and their earnings did not function as the primary drivers of income returns produced a net negative influence on income growth among countries experiencing labor income growth across most percentile ranges. improvements during this period, which suggests The increased representation of women in paid other factors may have played more influential roles in positions generally corresponded with modest determining wage and earnings trajectories across the downward pressure on income growth, driven by region. persistent gender-based income differentials. The The five LAC countries that experienced earnings gender earnings premium displayed divergent patterns growth higher than the regional average between across income segments. At lower percentiles, narrowing 2016 and 2024 showed a significant correlation gender disparities corresponded with increased income between educational attainment and incomes, growth, while at higher percentiles, expanding gender albeit with marked distributional variations (figure earnings gaps aligned with reduced growth. 12 shows the decomposition of labor income growth). If neither education nor gender drove labor income For populations below the 50th percentile, changes in growth during this period, what factors were educational composition accounted for 40 p.p. or less of responsible? Unmeasurable factors (such as effort, luck, observed income changes. In contrast, above the 80th ability, etc.) were the predominant force. When combined percentile educational shifts explained more than 80 p.p. with secondary factors (age, occupation, sector, urban of income variation. Concurrently, declining returns to location), this broad component accounts for an educational attainment exerted downward pressure overwhelming share of the change observed in median on income growth (with the exception of the 40th income. percentile, driven by Brazil). These educational effects 16 /27 Figure 12 Decomposition of Labor Income Changes in LAC Countries with High Earnings Growth, 2016–24 400.0 300.0 Percentage of labor income growth 200.0 100.0 0.0 -100.0 -200.0 -300.0 20 30 40 50 60 70 80 Labor income percentiles Other Education Wage Premium Workforce Educational Composition Gender Wage Premium Workforce Gender Composition Source: An elaboration based on data from LABLAC for countries with comparable data in 2016 and 2024 (see table A5). Note: The figure presents the results of Oaxaca-Blinder decompositions using recentered influence functions (Rios-Avila 2020) that analyze labor income distribution changes across percentiles in Brazil, Chile, El Salvador, the Dominican Republic, and Mexico. It shows the share of growth accounted by each component. The sum of all components is equal to 100 p.p. The analysis uses log labor income and worker characteristics (gender, education, age, sector, job type, location) to distinguish between changes in characteristics (endowments) and associated wage premiums (returns). “Other” includes factors such as age, sector, job type, location, and constant term effects. Using cross-sectional rather than longitudinal data means the results capture both workers who changed percentiles and those who did not. Sample included workers 15+ years old. JOBS 17 /27 4. Sectoral Reallocations Structural transformation—shifting labor from stagnant in Costa Rica, while legal-based informality low- to high-productivity sectors—has been a slow increased in Brazil. process in LAC and has not materialized uniformly Other countries in LAC did not show a similar across the region. The reallocation of workers toward transformation over the same period. Argentina, more-productive activities remains inconsistent, with Bolivia, and Chile experienced an increase in the several countries in the region still struggling to achieve employment shares of several low-productivity meaningful sector transitions. sectors and a decline in the employment share of During the last decade, employment moved toward high-productivity sectors. While Bolivia’s low-productivity higher-productivity sectors such as transportation, primary sector declined in terms of its employment communications, finance, and real estate in share, workers moved predominantly to low-productivity Brazil, Costa Rica, and Mexico (figure 13b). This and informal sectors such as retail and hospitality. In corresponded with a decline in the shares of agriculture Argentina, the manufacturing sector experienced a and construction employment. In general, these shifts decline in employment shares despite being a sector were accompanied with some improvements in terms characterized by relatively high productivity. In Chile, the of formalization, earnings, and overall job quality (figure public, health, and education sectors in the period of A2). However, these were not broad-based. Salaried study were marked by relatively low levels of productivity employment fell and average earnings were rather and accounted for a significant proportion of employment, which increased from 2016 on. Figure 13 Changes in Employment vs. Relative Productivity by Sector, 2016−24 (a) (b) Retail and Hospitality 6.5 6.5 Government, Transport, Communications, Transport, Communications, Employment Share (Change, p.p.) 4.5 Employment Share (Change, p.p.) Health and 4.5 Finance and Real Estate Retail and Hospitality Finance and Real Estate Education 2.5 2.5 Utilities Mining 0.5 0.5 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 -1.5 Utilities -1.5 Government, Mining Health and Education Construction Manufacturing -3.5 Agriculture -3.5 Agriculture Retail and Construction Hospitality Manufacturing -5.5 -5.5 -7.5 -7.5 -9.5 -9.5 log(sectoral productivity/total productivity), 2018 log(sectoral productivity/total productivity), 2018 Bolivia Chile Argentina Brazil Costa Rica Mexico Source: An elaboration based on data from LABLAC for countries with comparable data in 2016 and 2024 (see table A5). Labor productivity by sector comes from the Economic Transformation Database (Kruse et al. 2022). Note: The vertical axis presents the change in the share of total employment for a particular sector within a country and the horizontal axis the log relative productivity for 2018. The size of each bubble represents the size of the sector in total employment. Values for Costa Rica correspond to the period 2017–23 instead of 2016–23. JOBS 18 /27 5. Navigating Tomorrow: Labor Market Challenges and Opportunities Job creation and earnings growth in LAC through industries focused on sustainable growth—with these 2025 are projected to decline. The region is expected workers disproportionately clustered among the poorest to remain in its cycle of not creating enough quality jobs populations (Winkler et al. 2024). Finally, heightened to accelerate its progress toward poverty eradication global uncertainty poses challenges for jobs most (Barreto Herrera et al. 2024). exposed to the external sector. Beyond the well-known structural challenges as high Moving forward, policies to create more and better informality and high labor earnings inequality, new jobs should consider both the demand and supply threats loom large. First, GenAI’s rapid spread puts 2 side of the labor market. Demand-side policies to 5 percent of LAC jobs at a high risk of automation. include easing bottlenecks in strategic sectors such as Meanwhile, digital infrastructure gaps block productivity agribusiness and tourism, as well as cross-cutting policies gains for up to 17 million positions that could benefit such as promoting a friendlier business environment. On from AI (Gmyrek, Winkler, and Garganta 2024). Second, a the supply side, interventions that have proved effective significant share of the labor force participates in sectors are improving the quality of education and promoting vulnerable to the transition toward a more sustainable lifelong learning. economy and/or lacks skills required for emerging 19 /27 References Barreto Herrera, Karen Y., Hernan J. Winkler-Seales, Carolina Diaz Bonilla, and Diana M. Sanchez Castro. 2024. The Quality of Jobs in Latin America and the Caribbean—Technical Note. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/099101624155029030. Brummund, Peter, Christopher Mann, and Carlos Rodriguez-Castelan. 2018. “Job Quality and Poverty in Latin America.” Review of Development Economics 22 (4): 1682–1708. https://documents. worldbank.org/en/publication/documents-reports/documentdetail/825891536180050395/job- quality-and-poverty-in-latin-america Engbom, N., & Moser, C. (2022). Earnings inequality and the minimum wage: Evidence from Brazil. American Economic Review, 112(12), 3803-3847. https://doi.org/10.1257/aer.20181506 Gmyrek, Paweł, Hernan Winkler, and Santiago Garganta. 2024. “Buffer or Bottleneck? Employment Exposure to Generative AI and the Digital Divide in Latin America.” Policy Research Working Paper 10863, World Bank, Washington, DC. http://hdl.handle.net/10986/41984.https://www.ilo.org/sites/ default/files/2024-11/GET_2024_EN_web4.pdf Haddad, Cameron N., Daniel G. Mahler, Carolina Diaz-Bonilla, Ruth Hill, Christopher Lakner, and Gabriela L. Ibarra. 2024. “Inside the World Bank’s New Inequality Indicator: The Number of Countries with High Inequality.” World Bank Blogs, June 17, 2024. https://blogs.worldbank.org/en/ opendata/inside-the-world-bank-s-new-inequality-indicator--the-number-of-. Inchauste, Gabriela, João Pedro Azevedo, Boniface Essama-Nssah, Sergio Olivieri, Trang Van Nguyen, Jaime Saavedra-Chanduvi, and Hernan Winkler. 2014. Understanding Changes in Poverty. Washington, DC: World Bank. https://openknowledge.worldbank.org/entities/publication/e48f16d4- fd4a-5e4a-8160-b98b80428dd7 International Labour Organization (ILO). 2024. Global Employment Trends for Youth 2024. Decent Work, Brighter Futures. Geneva: International Labour Office. https://www.ilo.org/sites/default/ files/2024-11/GET_2024_EN_web4.pdf. Kruse, H., E. Mensah, K. Sen, and G. J. de Vries. 2022. “A Manufacturing Renaissance? Industrialization Trends in the Developing World.” IMF Economic Review 71 (2): 439–73. DOI: 10.1057/ s41308-022-00183-7. Lustig, N., Lopez-Calva, L. F., & Ortiz-Juarez, E. (2013). Deconstructing the decline in inequality in Latin America (Policy Research Working Paper No. 6552). World Bank, Poverty Reduction and Economic Management Network, Poverty, Equity and Gender Unit. https://openknowledge. worldbank.org/server/api/core/bitstreams/bc131c32-bdab-54c4-afae-bea6d4446b0f/content OECD. (2023). PISA 2022 results (Volume I): The state of learning and equity in education. OECD Publishing. https://www.oecd.org/en/publications/pisa-2022-results-volume-i_53f23881-en.html Rios-Avila, Fernando. 2020. “Recentered Influence Functions (RIFs) in Stata: RIF Regression and RIF Decomposition.” The Stata Journal 20 (1): 51–94. 20 /27 Saavedra, Jaime, and Ferdinando Regalia. 2023. “The Learning Crisis of Adolescents in Latin America and the Caribbean: A First Look at the New PISA Results.” World Bank Blogs, December 11, 2023. https://blogs.worldbank.org/en/latinamerica/learning-crisis-latin-america-caribbean-pisa-results. Winkler, Hernan J., Vincenzo Di Maro, Kelly Y. Montoya Munoz, Sergio D. Olivieri, and Emmanuel J. Vazquez. 2024. “Measuring Green Jobs: A New Database for Latin America and Other Regions.” Policy Research Working Paper 10794, The World Bank, Washington, DC. https://documents. worldbank.org/en/publication/documents-reports/documentdetail/099456306062431847/ idu10c3127b01781214cff1b0ce15131c0460cdb World Bank. 2024. Regional Poverty and Inequality Update Latin America and the Caribbean: October 2024. Washington, DC: World Bank. http://documents.worldbank.org/curated/ en/099101624155030674 World Bank. 2025a. Mexico Poverty and Equity Assessment. Washington, DC: World Bank. http://hdl. handle.net/10986/42839. World Bank. 2025b. Latin America and the Caribbean Economic Review, April 2025. Organized Crime and Violence in Latin America and the Caribbean. Washington, DC: World Bank 21 /27 Data Appendix Figure A1 Changes in the Job Quality Index for Selected LAC Countries, 2016 vs. 2023 (p.p.) 0.10 0.08 0.08 0.06 0.03 0.03 0.03 0.03 0.04 0.03 Change (p.p.) 0.00 0.02 0.00 -0.02 -0.02 -0.02 -0.04 -0.03 -0.03 -0.06 LAC Ecuador Panama Costa Rica El Salvador Mexico Brazil Dominican Peru Republic Chile Argentina 2016-2023 2016-2019 2019-2023 Note: The Job Quality Index (JQI) is a multidimensional index that combines four job characteristics: decent earnings, benefits, job security, and satisfaction. The JQI uses a scale of 0 to 1, with a higher number indicating the jobs in a country are of a higher quality. For more details, see Barreto Herrera et al. (2024), see LAC Equity Lab: Labor Markets - Job Quality Index (JQI) Figure A2 Wage Inequality (Gini Coefficient), 2024 vs. 2016 50 Gini in hourly wage earnings, 2024 45 Sri Lanka Brazil Colombia Argentina India 40 Peru (Lima and Callao) Dominican Republic LAC Bolivia Chile Paraguay Bangladesh Mexico Costa Rica 35 Thailand Georgia Uruguay Philippines El Salvador Ecuador 30 Armenia Mongolia 25 25 30 35 40 45 50 Gini in hourly wage earnings, 2016 LAC Non-LAC Sources: An elaboration based on data from LABLAC (for wages in LAC countries) and on data from the GLD (for non-LAC countries. In terms of time coverage, the years closest to the ones in the legend and that are comparable are used (see tables A5 and A6). Note: The LAC aggregate is the simple average of country-level levels. The sample includes workers ages 15+. Wages are the salaries of employees (excludes self-employment and employers). 22 /27 Table A1 Employment Growth (Annualized) by Country, Sector, Gender, and Skill Level, 2016–24 (percent) El Salvador Dominican Costa Rica Argentina Colombia Paraguay Republic Uruguay Ecuador Mexico Bolivia Brazil Chile Peru Sectors Primary Activities 6.2 1.2 -1.5 -2.4 1.1 -3.8 -1.9 0.1 -0.3 2.7 -1.2 -3.0 Public Administration and Defense 1.2 0.1 0.2 2.8 11.9 3.3 5.8 0.6 0.3 4.6 6.1 -3.1 Banks, Finance, Insurance, Professional Services 3.8 7.7 3.3 4.8 15.2 5.0 4.3 6.0 3.4 0.5 4.5 0.7 Retail and Wholesale, Restaurants, Hotels, Repairs 2.4 6.6 1.4 1.4 1.3 2.0 2.5 -0.1 2.5 2.0 1.3 3.9 Construction 0.7 2.5 -0.1 0.1 0.9 -0.5 3.5 1.6 1.8 1.2 6.7 0.8 Education, Health, Personal Services 2.9 5.5 3.4 5.0 7.4 2.4 2.5 3.4 2.7 2.1 0.0 -2.4 Electricity, Gas, Water, Transportation, Communications 2.8 4.6 3.2 3.5 5.8 3.7 -0.5 4.9 3.4 1.7 6.2 -3.1 Manufacturing 0.4 7.5 1.1 -0.2 0.4 1.6 0.8 2.3 2.0 0.8 0.4 -2.8 Domestic Services -0.1 7.0 -0.6 -6.7 9.9 0.1 -0.8 7.6 0.4 4.0 5.6 -2.7 Gender Female 2.7 5.7 1.7 2.4 6.7 3.0 2.7 1.4 2.8 1.2 2.3 2.6 -1.0 Male 1.5 3.3 1.3 1.2 2.8 0.8 1.4 1.5 1.4 1.0 1.3 1.5 0.0 Skill level Low -0.5 1.9 -2.3 -5.0 -1.0 -1.8 -0.5 0.3 -0.1 -0.8 1.6 1.5 -2.7 Middle 3.2 7.0 3.2 2.1 3.5 5.4 5.0 2.2 4.1 3.7 1.2 1.4 0.5 High 3.6 7.7 5.4 10.3 13.1 5.1 3.5 3.7 5.6 1.1 2.7 8.2 6.1 Source: An elaboration based on data from LABLAC. For time coverage, see table A5. Table A2 Earnings Growth (Annualized) by Country, Sector, Gender, and Skill Level, 2016–24 (percent) El Salvador Dominican Costa Rica Argentina Colombia Paraguay Republic Uruguay Ecuador Mexico Bolivia Brazil Chile Peru Sectors Primary Activities -5.1 -1.7 3.1 4.0 8.4 0.2 2.1 1.5 2.3 3.4 3.2 2.5 Public Administration and Defense -4.7 0.9 0.7 0.8 0.6 -0.8 1.8 -1.0 0.5 -0.4 1.0 6.4 Banks, Finance, Insurance, Professional Services -3.5 -2.6 0.7 -0.5 3.3 -0.2 0.6 0.1 2.1 -1.6 3.6 6.9 Retail and Wholesale, Restaurants, Hotels, Repairs -5.1 -1.8 1.1 1.0 6.8 -1.4 0.1 1.8 1.8 -1.3 1.9 4.4 Construction -4.5 -0.9 -0.2 0.7 5.6 1.9 2.1 5.3 2.1 -1.9 5.1 -3.4 Education, Health, Personal Services -4.6 0.3 1.2 0.2 2.7 -1.2 -0.4 1.0 0.8 0.0 1.8 2.1 Electricity, Gas, Water, Transportation, Communications -4.5 -1.8 1.3 2.4 8.0 2.6 -0.4 3.4 1.8 -1.9 1.6 8.8 Manufacturing -6.0 -1.5 0.4 0.0 1.9 -0.4 4.7 4.9 2.1 -1.8 2.3 5.2 Domestic Services -5.5 -0.1 0.2 0.6 -2.0 0.1 1.7 1.3 1.4 -0.8 0.5 6.1 Gender Female -4.6 -1.5 1.4 2.5 3.1 -0.2 0.6 1.8 1.7 1.4 -1.1 1.6 3.7 Male -4.4 -0.7 1.2 0.9 7.6 0.5 1.6 2.3 1.9 3.7 -1.0 3.1 3.9 Skill level Low -5.7 -1.9 0.8 0.9 0.6 -0.1 1.2 3.2 2.1 8.5 -2.4 3.4 1.1 Middle -4.9 -2.0 0.1 -0.8 2.5 -1.6 1.1 1.4 0.9 -0.6 -1.5 1.5 4.2 High -4.5 0.3 -0.7 -1.8 3.4 -1.1 -0.1 0.0 -0.7 0.3 -1.1 -1.3 2.9 Source: An elaboration based on data from LABLAC. For time coverage, see table A5. 23 /27 Table A3 Job Creation Rate (Annualized) for Men by Country, Sector, and Skill Level, 2016–24 (percent) El Salvador Dominican Costa Rica Argentina Colombia Paraguay Republic Uruguay Ecuador Mexico Bolivia Brazil Chile Peru Sectors Primary Activities 5.7 -0.1 -1.1 -2.4 -0.2 -3.9 -2.0 -0.1 -0.8 6.0 -2.2 -3.0 Public Administration and Defense 0.5 -0.6 0.2 2.0 12.9 2.9 5.8 1.1 -0.6 4.8 4.8 -5.2 Banks, Finance, Insurance, Professional Services 3.7 6.7 2.8 4.3 13.4 3.6 4.4 4.2 2.4 0.4 6.0 1.0 Retail and Wholesale, Restaurants, Hotels, Repairs 1.3 7.0 1.4 1.5 0.6 1.3 2.0 0.9 2.1 1.1 0.4 1.7 Construction 0.6 2.4 -0.2 -0.2 -0.7 -0.6 3.4 1.7 1.6 1.1 6.6 1.7 Education, Health, Personal Services 3.0 5.4 3.9 4.9 5.3 2.4 -0.4 3.3 2.5 1.8 -1.0 2.3 Electricity, Gas, Water, Transportation, Communications 2.0 4.9 2.9 2.7 5.7 3.4 -0.1 5.9 3.0 1.4 6.0 -4.5 Manufacturing -0.2 5.4 1.2 -0.4 0.9 0.2 0.9 1.6 1.3 0.1 0.2 -2.4 Domestic Services -2.6 9.4 -0.1 -13.8 4.2 -7.3 0.4 4.6 -0.3 2.0 4.0 16.1 Skill level Low -0.8 0.7 -2.1 -4.6 -1.8 -2.1 -0.5 -0.3 -0.4 -0.2 0.3 1.1 -3.3 Middle 2.9 5.7 3.6 1.7 2.1 5.0 4.8 3.2 3.9 3.0 0.6 1.5 3.9 High 3.3 8.0 5.2 9.7 13.2 3.9 2.7 4.0 4.9 0.5 2.9 6.3 11.4 Source: An elaboration based on data from LABLAC. With regard to coverage, see table A5. Table A4 Job Creation Rate (Annualized) for Women by Country, Sector, and Skill Level, 2016–24 (percent) El Salvador Dominican Costa Rica Argentina Colombia Paraguay Republic Uruguay Ecuador Mexico Bolivia Brazil Chile Peru Sectors Primary Activities 10.0 3.0 -3.0 -2.4 7.6 -3.2 -0.3 0.5 3.2 -3.9 6.5 -3.0 Public Administration and Defense 2.1 1.7 0.2 3.9 10.6 4.0 5.8 -0.1 1.8 4.3 9.3 -0.6 Banks, Finance, Insurance, Professional Services 4.0 8.9 3.9 5.6 16.8 7.5 4.2 8.4 4.8 0.7 2.1 0.3 Retail and Wholesale, Restaurants, Hotels, Repairs 3.9 6.4 1.5 1.3 2.0 2.8 3.2 -1.0 2.9 2.6 1.9 6.5 Construction 4.0 4.8 3.4 4.3 28.7 2.7 8.1 -0.7 5.7 2.2 8.4 -13.3 Education, Health, Personal Services 2.7 5.6 3.2 5.1 8.7 2.4 3.7 3.4 2.8 2.2 0.7 -4.5 Electricity, Gas, Water, Transportation, Communications 6.9 1.2 4.4 6.9 6.8 5.6 -3.0 -2.6 7.0 3.6 7.5 3.3 Manufacturing 1.8 10.1 0.9 0.1 -0.4 4.8 0.7 3.6 3.1 1.9 0.5 -3.6 Domestic Services 0.0 6.9 -0.6 -5.6 10.3 1.0 -0.9 7.8 0.5 4.1 5.7 -4.5 Skill level Low 0.0 3.3 -2.7 -5.5 0.7 -1.1 -0.4 1.2 0.6 -1.7 2.9 2.0 -1.9 Middle 3.6 9.0 2.7 2.6 5.6 6.0 5.3 0.8 4.3 4.7 2.1 1.3 -2.5 High 3.8 7.4 5.5 11.0 13.0 6.1 4.0 3.3 6.5 1.5 2.4 9.9 2.7 Source: An elaboration based on data from LABLAC. With regard to coverage, see table A5. 24 /27 Table A5 LABLAC Coverage and Comparability Informality Earnings Job creation Earnings (same as first (same as first growth LABLAC latest survey availability Comparable periods Coverage aggregate column unless noted) column unless aggregate (2016-2024) noted) (2016-2024) Argentina 2024-Q3 2016-2024 Urban Yes Yes Bolivia 2024-Q2 2016-2024 National Yes Yes Brazil 2024-Q3 2016-2024 National Yes Yes Chile 2024-Q3 2016-2024 2016-2023 National Yes Colombia 2024-Q4 2016-2019; 2021-2024 2016-2019; 2021-2023 National Yes Costa Rica 2024-Q4 2016-2024 National Yes Yes Dominican Republic 2024-Q3 2017-2024 National Ecuador 2024-Q3 2021-2024 National Mexico 2024-Q3 2016-2024 National Yes Yes Paraguay 2024-Q3 2017-2019; 2022-2024 National Peru 2024-Q3 2016-2024 2016-2022 Lima-Callao Yes Yes El Salvador 2023-Q4 2016-2023 National Uruguay 2024-Q2 2016-2019; 2022-2024 National Yes Yes Table A6 Exceptions to Standard Time Periods: Cases Using Approximate Years LABLAC Country Period 2016-2019 Period 2019-2024 Period 2016-2024 Colombia 2021 (Q2)- 2024 (Q2) Average Uruguay El Salvador 2021 (Q2)- 2023 (Q2) 2016 (Q2)- 2023 (Q2) Dominican Republic 2017 (Q2)- 2024 (Q2) 2017 (Q2)-2019 (Q2) Paraguay 2022-Q2- 2024 (Q2) Average Ecuador N.A 2021-Q2- 2024 (Q2) 2021 (Q2)- 2024 (Q2) GLD ILO Period 2016 -2022 Country Period 2016-2022 Georgia Armenia, Indonesia, 2016-2021 Philippines India 2017-2022 Thailand, Viet Nam 2016-2023 Zambia Georgia 2017-2022 Indonesia 2016-2019 India 2018-2023 Turkey Mongolia 2019-2023 Ethiopia 2013-2021 Gambia 2018-2023 Sri Lanka 2015-2021 Pakistan 2017-2020 Rwanda 2017-2021 Thailand 2016-2021 Tunisia 2016-2017 Tanzania 2014-2020 South Africa 2016-2020 25 /27 Table A7 Key Concepts Definition - Large private: more than 5 employees Firm Size - Small private: 5 or fewer employees - Public sector - Low skill: Never attended, Completed primary and Incomplete secondary Educational Attainment - Middle skill: Completed secondary and Incomplete higher education - High skill: Completed higher education Informality - Productivity Definition Salaried workers in small firms, non-professional self-employed and zero-income worker Informality - Social Protection Salaried workers reports having the right to retirement benefits Definition Earnings Labor incomes from the main occupation as employer, salaried, self-employed or other unspecified relationships Wages Hourly wage for salaried workers in main occupation Learn more: LAC EQUITY LAB