Us 67 for families and individuals that are

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Unformatted text preview: es (like in El Salvador), the adjustment took place earlier than planned to protect workers’ purchasing power due to high inflation during 2008. Finally, firms are receiving special subsidies and loans or benefiting from corporate tax reductions in Chile and Mexico in order to protect employment. While some of these interventions are aimed at providing a finance cushion to small and medium enterprises, their coverage, take up and impact cannot be fully assessed still. Table 1: LAC Labor Market Interventions (Changes to policies since Oct. 2008) Argentina Bolivia Brazil Chile Colombia Guatemala El Salvador Honduras Jamaica Mexico MinimumWage Unemp. Insurance Training x x x x x x x(1) x x x x x x x Wage subsidies* x x x Public Works x x x * This includes wage subsidies and other labor cost reductions. (1) Tax credit and leave for training activities. Source: Crisis Policy Response ‐ LAC Social Protection Unit. Latin America in International Perspective When compared to other countries in the world with available data, Latin American countries are not among the worst hit by the crisis. Table 2 includes year‐to‐year changes in open unemployment rates as an indicator of the impact of the crisis on the labor market for a selection of countries. Spain, The United States and small open economies/cities in Asia (Singapore, Hong‐Kong and Taiwan‐China) show an increase of more than 50 percent in their open unemployment rates in the past year. On the other hand, most Latin American countries register changes in their unemployment rates of less than 30 percent (Chile and Mexico) and even at or below the 10 percent mark (Brazil, Colombia, Peru and Uruguay). Absolute changes are also a good indicator of the severity of the impact. In this regard, Chile is the only country with a rise in the open unemployment rate of more than 2 percentage points, so far. This mark is similar to the increases observed in Hong‐Kong and Taiwan, but still well below the record marks of 83 Spain (7.9 percentage points), the U.S. (3.9 percentage points), Turkey (3.9 percentage points), Canada (2.6 percentage points) and Sweeden (2.3 percentage points). Table 2: Change in Open Unemployment Rates in selected countries initial Spain USA Singapore Hong‐Kong Taiwan (China) Canada Sweden UK Turkey Australia Mexico Chile Thailand Norway Hungary Portugal Peru Uruguay Morocco Colombia rate 9.6 5.2 2.6 3.3 3.8 6.2 6.0 5.2 11.6 4.3 4.0 7.7 1.7 2.5 8.0 7.6 7.1 7.6 9.5 12.1 period Q1 2008 May‐08 Q1 2008 Mar‐08 Apr‐08 May‐08 Apr‐08 Q1 2008 Feb‐08 Apr‐08 Q1 200 8 Mar‐08 Q1 2008 Q1 2008 Q1 2008 Q1 2008 Mar‐08 Apr‐08 Q4 2007 Feb‐08 final rate 17.5 9.1 4.4 5.3 5.8 8.8 8.3 7.1 15.5 5.6 5.1 9.8 2.1 3.1 9.7 8.9 7.8 8.3 10.4 12.9 (1) annual change period Q1 2009 May‐09 Q1 2009 Mar‐09 Apr‐09 May‐09 Apr‐09 Q1 2009 Feb‐09 Apr‐09 Q1 2009 Mar‐09 Q1 2009 Q1 2009 Q1 2009 Q1 2009 Mar‐09 Apr‐09 Q4 2008 Feb‐09 Germany 7.8 May‐08 8.2 May‐09 Brazil 8.6 Mar‐08 9.0 Mar‐09 Philippines 7.4 Q1 2008 7.7 Q1 2009 Poland 8.1 Q1 2008 8.3 Q1 2009 South Africa 23.5 Q1 2008 23.3 Q1 2009 Egypt 9.1 Q4 200 7 8.8 Q4 2008 Source: International Labor Office, LABORSTA ‐Internet 84 in percentage in percentage points change 7.9 82% 3.9 75% 1.8 69% 2.0 61% 2.0 51% 2.6 42% 2.3 38% 1.9 37% 3.9 34% 1...
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This document was uploaded on 11/14/2013.

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