BID Report: Latin America Labor Gains Barely Move in 30 Years

A new Inter‑American Development Bank (BID) study finds that real wages for workers in Latin America have risen only 18 % over the past three decades, roughly half the pace recorded in OECD economies. Productivity remains stagnant, with the region’s output per worker at just 26 % of that of the United States, meaning almost four Latin American workers are needed to match the output of one U.S. worker.

The report notes modest progress in women’s participation in the formal sector and modest improvements in social‑protection coverage, but highlights that 46 % of workers remain in informal or micro‑enterprise jobs. Low productivity and skill mismatches are identified as key drivers of low incomes. The authors, including economist David S. Kaplan, call for greater investment in vocational training, reforms to labour‑market regulations, and incentives to encourage formal hiring. They also warn that the spread of artificial intelligence and demographic ageing could intensify pressures on labour markets and pension systems in the coming decade.