Mov avg activity rate figure3 2008 jul jul months

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Unformatted text preview: w highlights the importance of further studies to understand two main questions: i) why different countries in the region show different labor market adjustments to the crisis and ii) what explains the adoption and effectiveness of the wide range of policy responses adopted by governments. *LCR CRISIS BRIEFS SERIES. 109 This is the first of a series of notes to monitor the status of the labor market during this crisis period. Forthcoming issues will extend the study to other countries of the area, and complement the analysis of the countries included with further data. It will also report advances in labor market policies adopted by governments as the crisis evolves. This note was produced by a joint team from the Social Protection and Poverty and Gender Units including Georgina Pizzolitto, Diana Hincapie, Pablo Acosta and, Rodolfo Beazley, under the guidance of Helena Ribe and Jaime Saavedra. 8 1 Understanding the size and speed of the impacts of the crisis on labor markets depends on the availability of high frequency data. Countries included in this review fall into two categories: those with higher frequency data (i.e., monthly or quarterly labor statistics) and those with low frequency data (i.e., annual or bi‐annual statistics). For the latter group, however, leading indicators such as Social Security records provide some indicative information on the nature of the labor market response to the crisis. Current Labor Market Impacts of the Global Crisis Regarding the impact of the crisis, all countries with timely data show an increase in unemployment rates. Chile registers an increase in the unemployment rate of 2.1 percentage points for the latest month in record with respect to the same month one year ago. Colombia and Mexico register near one percentage point changes. Brazil shows an even smaller increase (0.4 percentage points) but a very rapid rise in recent months. These rises in unemployment are accompanied by important falls in net job creation since mid 2008. Countries differ on the main force that explains this fall in net employment creation. On one hand, Brazil, Chile and Mexico, register a deep fall in salaried net job creation since mid 2008. In Colombia, on the other hand, it is net job creation of non‐salaried jobs (i.e. employers, self‐ employed and unpaid workers) what is driving the fall in total employment. All countries show a net destruction of non‐salaried jobs towards the end of 2008 or the beginning of 2009, although the Mexican is the largest fall in both relative and absolute terms. In general, non‐salaried workers represent a large portion of total informal employment. Hence, it can be argued that the crisis is having a more noticeable negative effect on the formal sector in Brazil and Chile whereas in Colombia the informal sector has been the most affected. Mexico shows both sectors been seriously hit by the recession. A preliminary distributive analysis of the Mexican case shows that the poorest households and the households in the North...
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This document was uploaded on 11/14/2013.

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