El Niño phenomenon threatens labor markets and business operations

The intensification of the El Niño phenomenon, which may persist until 2026 or 2027, is creating significant challenges for both corporate operations and residential management in Latin America.

A report from the International Labour Organization (ILO) warns that the phenomenon threatens the availability of natural resources, impacting irrigation, human consumption, and hydroelectric power generation. Extreme weather, including droughts and floods, is expected to degrade soil, contaminate water sources, and damage infrastructure, ultimately affecting employment and labor institutions in the region.

In the corporate sector, experts from the Latin American Quality Institute (LAQI) emphasize that climate adaptation must move from an environmental agenda to a core strategic necessity to protect supply chains and business continuity. Similarly, in the residential sector, management professionals are being advised to prioritize preventive maintenance—such as inspecting roofs, drainage systems, and electrical installations—to mitigate the risks of extreme rain and wind and avoid high corrective costs.