In 2024, Brazil chaired the G20, a coalition of the world’s largest economies that encompasses nearly two-thirds of the global workforce. On the occasion of the G20 Summit held on November 18-19 in Rio de Janeiro, this blog post summarizes the key discussions that took place within the Employment Working Group (EWG), with the Inter-American Development Bank (IDB) participating as an invited institution.
Four key themes were prioritized for discussions in 2024:
- Quality job creation and promotion of decent work, ensuring social inclusion and eradicating poverty and hunger.
- The need for a Just Transition: Addressing the digital and energy transformations.
- The use of technology for enhancing the quality of life for all people.
- Gender equity and promoting diversity in the labor market.
These themes align with IDB’s institutional strategy aimed at promoting socio-economic development and sustainable growth in Latin America and the Caribbean, guiding our contributions to the discussions.
Gender Equity and Diversity in the Labor Market
To ensure a more inclusive and resilient labor market, it is essential to create conditions that allow women, LGBTQIA+ individuals, and other historically marginalized groups to access equitable opportunities for growth and professional development. This includes implementing equal pay policies for equal work, promoting equitable access to higher-skilled and higher-paying jobs, and fostering training programs—topics that were addressed during the working group meetings.
However, significant challenges persist globally, particularly in increasing the participation of women and minority groups. The labor force participation rate—an indicator reflecting the proportion of the working-age population that is employed or seeking employment—stands at around 60% among G20 countries. When analyzed through a gender lens, a large discrepancy emerges: the global male participation rate is 72.9%, while the female rate only reaches 48.0%. This gap underscores the ongoing gender divide in the labor market.
To tackle this inequality and promote diversity, the G20 established the Brisbane Goal in 2014, aiming to reduce the gender gap in labor force participation by 25% by 2025. However, according to a recent study by the ILO and OECD prepared to support the G20 discussions in 2024, just over half of the member countries are on track to reach this goal by next year.
In an effort to tackle this situation, G20 Labor and Employment Ministers reaffirmed their commitment to the Brisbane Goal, with the hope of bringing 100 million women into the labor market. The ministerial declaration agreed upon in July this year emphasizes priority policies such as salary transparency, investment in care services, and the reduction of occupational segregation.
The Impact of Technological Advances on the Workforce
Technological advancements, particularly driven by automation and artificial intelligence (AI), have profoundly transformed the global labor market. This impact is especially significant in emerging economies like those in Latin America and the Caribbean, where the IDB operates, and where informal employment is prevalent. Automation is reshaping occupational structures, highlighting the need for skills such as digital literacy, critical thinking, and adaptability.
The IDB advocates for public policies that facilitate the transition to a more digitalized labor market, with a focus on inclusion and diversity. While emerging technologies like generative AI can boost productivity and create new job opportunities, they also have the potential to exacerbate inequalities, particularly affecting vulnerable groups, which often include women and ethnic-racial minorities.
For women, barriers in the technological landscape include persistent gender stereotypes, a lack of female role models, and workplace discrimination. These structural and cultural challenges hinder their advancement, particularly in STEM fields (science, technology, engineering, and mathematics), limiting their influence on technological development.
G20 Labor and Employment Ministers stressed the importance of creating regulatory environments that foster innovation while protecting workers’ rights. This includes promoting diversity and inclusion in the development and application of AI technologies, as well as establishing social protection systems that adequately support workers displaced by automation.
A Just Transition in Response to Climate Change Impacts
The shift towards a low-carbon economy has direct implications for the labor market. On one hand, decarbonization and climate adaptation policies are essential for mitigating climate change effects, but they can also lead to job losses in traditional sectors. Conversely, these policies have the potential to create opportunities in sectors like renewable energy, sustainable construction, and waste management.
A just transition ensures that the necessary transformations for a sustainable economy are inclusive and equitable, benefiting all segments of the population and ensuring no one is left behind in this global transformation process.
In Latin America and the Caribbean, 17% of jobs are classified as green according to a recent IDB publication. However, the majority of these jobs are found in male-dominated sectors.
It is crucial to implement policies that promote diversity and inclusion for women and other underrepresented groups in these emerging sectors. Additionally, retraining and upskilling programs are vital to ensure that all workers can adapt to the new demands of the green labor market.
1 – Distribution of Green Jobs in Latin American and Caribbean Countries (% of Jobs in Each Country)
Source: BAPTISTA, D. et al. “Labor Markets and Climate Change: How to Adapt Labor Policies and Improve Employment Opportunities?” Inter-American Development Bank, 2024.
What Are Green Jobs?
Green jobs are those that directly contribute to environmental sustainability, either through the production of environmental goods or by using natural resources more efficiently.
G20 Ministers of Labor and Employment reaffirmed the importance of a just transition that promotes environmental sustainability, decent work, quality jobs for all, and social inclusion. Among the key actions highlighted are the need to strengthen retraining and skill enhancement programs, as well as social protection policies that provide support to workers affected by the energy transition and climate change.
How to Move Forward in These Areas
The IDB has supported various initiatives to contribute to a more just, inclusive, and sustainable labor market in Latin America and the Caribbean. This involves translating global commitments into concrete actions that directly benefit the region’s most vulnerable populations.
It is essential that policies promoting diversity and gender equity continue to progress to ensure equal opportunities and pay. Moreover, automation and artificial intelligence require a balanced approach that combines innovation with the protection of labor rights.
Ultimately, a just transition is key to addressing the impacts of climate change, ensuring that workers are retrained and socially protected throughout this global transformation process.
Leave a Reply