Employment in Latin America: Cornerstone of social policy

This article analyses labour market trends in Latin America and the Caribbean during the 1990s and suggests that employment should form the basis of a social policy strategy for the region. It begins with an analysis of the expectations generated with respect to the labour market by the reform process carried out in the region, after which it presents an overview of what has actually happened in terms of rates of participation, generation of employment, unemployment and wages, also suggesting some reasons why the reality was below expectations. It then goes on to examine a new hypothesis on the different performances of the labour markets in the more northerly countries of the region and those of the south. Finally, on the basis of data which bear out that hypothesis, it formulates policy recommendations on specific measures for both areas and describes policies that could be applicable to the region as a whole.