Almost 50% of households in Latin America earn less than before the pandemic

The recovery of the economy is shown unevenly in Latin America and the Caribbean, who are trying to get out of the COVID-19 crisis with a weakened economy, lower incomes in nearly half of households and twice as food insecure, according to a survey published this Monday, November 29 by the World Bank and the United Nations Development Program (UNDP).

Despite the fact that the situation is more favorable as the countries relaxed confinement measures and advanced vaccination campaigns, the regional employment rate is 11 percentage points lower than the pre-pandemic rate, with 62% of the population aged working currently employed.

Haiti is the country with the most job loss, where one in four people employed before the pandemic says they no longer work. This country is followed by Colombia, Brazil and Ecuador, countries where the loss of work has had a direct impact on families, since about half of the households have not recovered the level of income prior to the pandemic. This despite government subsidies and emergency aid “that together benefit 46% of households in the region,” adds the World Bank.

On the other hand, the employment rate compared to pre-pandemic levels has only risen in Guatemala, Nicaragua and El Salvador, but at the cost of a deterioration in the labor market, with more informality and fewer hours worked.

The pandemic evidenced pre-existing economic differences, since food insecurity almost doubled, especially in countries with the highest inequality and poverty, says Luis Felipe López-Calva, UNDP regional director for Latin America and the Caribbean. Likewise, the specialist assures that “this survey allows us to take the pulse of the region and propose solutions based on evidence.”

To emerge stronger from the crisis, the region must carry out reforms “already known but pending”, such as improving the quality of education, facilitating private investment to generate employment, investing in renewable energies and allocating funds for urban mobility. says Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean.