Latin America latest publications
May shows progress in the labor market, due to the gradual opening of the economy, with the recovery of 15% of the jobs and 33% of the labor force lost between February and April. However, the high level of inactivity seen until April translated into an increase in the number of the unemployed in May.
Unemployment in Uruguay reached 10.1% in March, reflecting the effect of measures implemented to contain the outbreak of the coronavirus, in a poorly performing labour market. We expect the unemployment rate to rise to 14.2% this quarter. What are the challenges for the labor market in the wake of the pandemic?
Between March and April, the number of workers fell by 4.4M, to 2003 levels. The effects of COVID on the occupation will begin to be mitigated, as the economy opens up. Its effects on unemployment will take longer to begin to reverse. By the end of 2020, both employed and unemployed will be far from their pre-COVID levels
June 1, 2020
Mexico | Remittances almost immune to coronavirus crisis, decreasing by just 2.6% in April
Despite the unemployment rate increasing from 4.4% to 14.7% between March and April in the U.S. the flow of this resource fell by just 2.6% during April, amounting to USD 2,861 million. In April, remittances to Guatemala fell by 20.2%, while remittances to El Salvador fell by 40.0%.
The estimates made by ECLAC, Coneval and BBVA Research are presented on the effect that the current crisis by Covid-19 can have on the increase in poverty and extreme poverty levels in Mexico in 2020.
An unprecedented monthly fall in employment of 7% or 1.6 million people was observed in March. The sectors that contributed the most to the fall in employment were retail and entertainment-related activities. Most of the jobs lost were of employees in private companies
May 4, 2020
Mexico | Record amount of remittances in a single month:USD 4,016 million in March (35.8%)
Immersed in the global crisis by Covid-19, remittances to Mexico reached a record of 4,016 million dollars in March. This is equivalent to a 35.8% growth, an increase not seen for 16 years. The sudden increase is partly explained by the strong appreciation of the US dollar against the peso, which increased by 25%.
Colombian GDP will contract around 3% in 2020, as a result of COVID-19 and oil price reduction. Due to confinement, sectors will reduce output with effects on employment and social indicators. Inflation will moderate driven by a weak demand and despite the exchange rate depreciation. The central bank will reduce rates.