An interesting new report by the World Bank and United Nations Development Programme (UNDP) in today’s paper says that while employment in Latin American and the Caribbean (LAC) has recovered, in many cases it remains below pre-pandemic levels. The survey of adults with telephone access in 14 countries said average paid weekly hours dropped from 43 to 37. The employment rate declined by near 11 to 62 per cent, with formal employment down 5.3 per cent.
Self-employment grew by 5.7 per cent and the number of people working for small businesses with four or fewer personnel by 8 per cent. These last two figures supposedly also indicate less quality work.
In addition, 28 per cent of formal workers lost their former job, of which more than half (17 per cent) left the labour market. To top it off, 23.9 per cent of households are affected by food insecurity, up from 12.8 per cent before COVID-19.
Predictably, the most vulnerable, poorest and less educated have been disproportionally impacted, particularly mothers with children up to five years old. Among women in general 39 per cent were left unemployed, compared to 18 per cent among men.
What this means to St. Maarten is that great care must be taken not to derail the still very frail restoration of the local tourism economy with all possible social consequences. The crisis “underscored pre-existing inequalities in the region,” according to the study, even though about 38 per cent of respondents received some form of emergency relief payments from government.
Any fiscal or other restructuring measures in the so-called “country package” to be supervised by the Caribbean Body for Reform and Development COHO that add to the burdens facing companies and/or citizens should therefore consider this harsh reality.
