Currently, 150 million people in the region work informally and do not have access to basic labor rights such as a pension.The informal economy is a multi-causal, large-scale and, at the same time, highly heterogeneous problem, so that the transition to the formal economy is a major challenge. Informality is a multi-causal problem of great magnitude and, at the same time, highly heterogeneous, making the transition to the formal economy a great challenge.
In Latin America, unregistered activities are an important source of employment for millions of people. According to the latest data from the International Labor Organization, 9 out of 14 countries analyzed exceeded 50% of informality during 2019. Countries with large informal economy size include Bolivia (85%), Guatemala (80%), El Salvador (70%) and Paraguay (69%).
This great tragedy that our region suffers from has been exponentiated during COVID-19. The outbreak of the pandemic has not only accelerated the technological evolution in all areas of our lives, but has also deepened the already existing inequalities.
For this reason, it is urgent that we put the debate on quality employment on the public policy agenda in Latin America. A topic that has been little debated, with almost no evidence on the subject, and that in some discussions does not seem to exist. Research and publications abound on how technology is impacting new professions, on how the pandemic is transforming entire sectors by incorporating a more hybrid, remote and flexible work modality, which already existed in most developed countries. But there is very little debate about work today, about the reality of so many Latin Americans without quality employment and where technology, far from bringing opportunity, aggravates their situation.
Informality is often associated with a lack of training, although education is not a guarantee of access to formal employment, it is a fundamental condition. Skills and capacity building are essential factors in the transition to the formal economy.The program is designed to improve people's skills and, consequently, their employability.
Until the outbreak of the pandemic, the secondary school graduation rate in Latin America was approximately 60%, i.e., for every 100 children entering first grade, 40 did not graduate from secondary school. The combination of low levels of schooling in some countries, combined with a limited supply of training, means that a large portion of the population can only access secondary education if they are able to complete secondary school.
to low-skilled jobs with higher automation possibilities.
But this fact not only affects the jobs that a student can access and his or her possibilities for professional growth, but also the productivity of a country and, by decanting, its economic development. This is the focus of my recent book "Out of work: employment in Latin America between poverty, education, technological change and the pandemic". where, From an education-centered perspective, I seek to reflect on the society of the future and the opportunities that we must generate for that half of Latin Americans who today lack formal and quality jobs.
Talking about education should be synonymous with talking about work. If education does not contribute to this dimension that dignifies people, it is just an illusion. It often seems politically incorrect to say that schools prepare students for the world of work. But school, in addition to teaching values, citizenship, socialization, should generate the skills and abilities for employment.
In education, we generally do not consider employment as an educator. And neither do industry analysts and experts seem to see it that way. We talk about the fact that cognitive and non-cognitive skills are acquired in educational institutions, schools, universities, academies, vocational training centers, but little mention is made of the fact that they are also acquired by working. In employment, whatever it may be, we learn a lot. We learn about the job itself, and also about how to perform and relate to other people, how to achieve, how to evaluate and be evaluated, how to persuade and be persuaded. Employment is a great generator of education, and in many cases does it better than institutions dedicated to training.
This is why I believe that in the face of the challenge of informality, all actors must play a role. The State must ensure the conditions for the private sector, the largest generator of employment, to be able to do so, and of course, education is the key for this to happen.
Gabriel Sánchez Zinny,
former minister of education of the province of Buenos Aires and director at Blue Star Strategies, Washington D.C.
