The latest Labour Overview 2025 for Latin America and the Caribbean from the International Labour Organization (ILO) reports a moderate recovery in employment across the region. Despite these improvements, the report warns that persistent informality and inequality continue to limit progress, underscoring the need for urgent policy responses as the world of work undergoes rapid transformation.
In the first half of 2025, labour force participation held steady at around 63 per cent, with the employment rate nearing 60 per cent. Unemployment dropped to approximately 6 per cent, marking one of the lowest levels in 15 years. These figures indicate greater stability in the labour market, with more people working or actively seeking employment compared to the previous year.
However, informality remains a central challenge, affecting nearly half of the region’s workforce. Although it saw a slight decline to 46.7 per cent, informal employment continues to shape the livelihoods of millions. ILO Regional Director Ana Virginia Moreira Gomes emphasized that positive averages should not overshadow the need for stronger policies that promote decent work, equality and social protection.
The report highlights persistent inequalities affecting women and youth. Despite some improvement in women’s labour indicators, men still hold a 22-percentage-point advantage in both participation and employment rates. Women also face a higher unemployment rate. Young people experience even greater challenges—with unemployment nearly three times that of adults and informality affecting over half of youth workers. These disparities represent real human experiences, influencing access to income, wellbeing, education and long-term development.
Significant differences also persist across countries and sectors, deepening inequalities for women and young workers. The report further examines shifts in the world of work, including the rise of digital platform labour, where workers with higher education tend to earn more.
Labour economist Gerson Martínez stresses that while some indicators are improving, deeper analysis reveals uneven progress requiring updated policies and regulations to address emerging forms of work. The findings follow the commitments reaffirmed during the 20th ILO American Regional Meeting, where regional leaders endorsed the Punta Cana Declaration promoting decent work and formalization.
The publication offers detailed data by country, age, sex and sector, serving as an essential resource for policymakers, employers, workers and journalists shaping the future of employment in Latin America and the Caribbean.
