The Prospect of Unemployment in Latin America
According to a recent World Health Organisation survey, over half of all visits to Chile's public health system involve psychological ailments, mainly depression. "The repression isn't physical any more, it's economic --- feeding your family, educating your child," says María Peña, who works in a fishmeal factory in Concepción. "I feel real anxiety about the future," she adds, "They can chuck us out at any time. You can't think five years ahead. If you've got money you can get an education and health care; money is everything here now."
Silent Revolution: The Rise of Market Economics in Latin America, Duncan Green, p.96
In a previous note (Working in Latin America), we dealt with the harsh realities of being unemployed in Latin America and counted the toll in both material and psychological terms. In an era of in which volatile economies are linked by globalization, shocks are propagated rapidly across the world. Countries that appear to be fundamentally sound can be affected by events elsewhere in the world. In psychological terms, even people who have never been unemployed before may find the prospect of unemployment a constant and looming threat.
According to the Los Medios y Mercados de Latinoamérica study, 75% of Latin Americans between the ages of 12 and 64 years old said that they "Agree Mostly" with the statement: "I am worried that I (or a family member) will lose the job and not find one." This is a very high number that indicates a great deal of angst among Latin Americans about this subject.
The following table shows the geo-demographic breakdown of these responses. Geographically, the smaller countries in South America (Bolivia, Ecuador, Paraguay, Peru and Uruguay) have the lowest agreement rates. The highest rates occur in Argentina and Brazil, two countries whose interlinked economies were in recession at the time of the survey. Actually, in the case of Argentina, the high unemployment had been a persistent problem in the 1990's and seemingly with no obvious solution. In terms of age, the teenagers are relatively less concerned, but their 68% agreement rate can hardly be characterized as blissful ignorance.
| Geodemographic characteristics | % Agree mostly with "I am worried that I (or a family member) will lose the job and not find one" |
| Geographical region Argentina Brazil Chile Colombia Mexico Venezuela Balance of Central America/Caribbean Balance of South America |
85% 79% 72% 71% 76% 79% 75% 55% |
| Age 12-17 years old 18-24 years old 25-34 years old 35-44 years old 45-54 years old 55-64 years old |
68% 72% 77% 81% 80% 74% |
| Sex Male Female |
73% 78% |
| Marital Status Single (never married) Cohabitating with mate Married Widowed Separated Divorced |
70% 79% 78% 84% 85% 85% |
| TOTAL | 75% |
(source: Los Medios y Mercados de Latinoamérica, Audits & Surveys Worldwide)
In the next table, we show the socio-economic characteristics of the respondents. Worrying about unemployment cuts across socio-economic classes, with the elite class slightly less concerned. Of the occupations, the professionals are least worried because there is still plenty of unmet demands for technologically savvy people. Ironically enough, the managers of these professionals are the ones who worry the most.
| Economic Characteristics | % Agree mostly with "I am worried that I (or a family member) will lose the job and not find one" |
| Socio-economic
Level Level A (Top 10%) Level B (Next 20%) Level C (Next 30%) Level D (Bottom 40%) |
71% 77% 78% 74% |
| Employment Status Full-time Part-time Unemployed |
76% 75% 74% |
| Occupation Professional Manual laborer Sales Office worker Service worker Manager |
63% 73% 74% 78% 78% 84% |
| Employment Sector Agriculture Manufacturing Service |
61% 78% 77% |
| TOTAL | 75% |
(source: Los Medios y Mercados de Latinoamérica, Audits & Surveys Worldwide)
The impact of unemployment depends on the life cycle stage. For example, it may be less devastating for a single person who does not have to provide for a family. The next table shows the responses by life cycle stage.
| Life cycle stage | % Agree mostly with "I am worried that I (or a family member) will lose the job and not find one" |
| Last 12 months Marriage Parenthood New home Moved out of parents' home Changed jobs |
82% 74% 80% 70% 80% |
| Next 12 months Marriage Parenthood New home Moved out of parents' home Changed jobs |
81% 80% 83% 72% 78% |
| TOTAL | 75% |
(source: Los Medios y Mercados de Latinoamérica, Audits & Surveys Worldwide)
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(posted by Roland Soong on 11/03/00)
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