EMPLOYMENT in the Latin America and Caribbean region has increased in urban areas for a second consecutive year, according to a joint report published by two United Nations (UN) agencies.

The Economic Commission for Latin America and the Caribbean (ELAC) and the International Labour Oganisation (ILO) reported Wednesday that the level at which unemployment is decreasing from 2010 until now has not been seen since the beginning of the 1990s.

Urban unemployment should decrease to 6.5 per cent from the 7.3 per cent reported in 2010.

“The number of formal jobs as well as salaries — both average and minimum — increased in real terms, though modestly,” the report said.

Labour markets in the region should experience continued recovery throughout the year despite uncertainty caused by the global economic situation, it said.

But Jamaica has not contributed to the region’s increasing employment rate since unemployment has gone up in the island despite more youths being hired.

However, gaps in the markets still persist for women and youth across the region, “who continue to face unfavourable unemployment levels”, the report said.

Regional economic growth should slow down this year in the face of increased employment, again because of high uncertainty.

“The region needs to grow more,” said ELAC’s executive secretary, Alicia Barcena, and regional director of the ILO, Elizabeth Tinoco.

“Productivity must grow at a steady pace to serve as the basis for sustained improvements in the well-being of the populace,” they said.

“The challenge that must be addressed is continuing to increase productivity while enhancing the mechanisms for distribution gains that will encourage investment and boost worker and household income.”

Despite an annual increase in labour productivity of 1.5 per cent, the region remains far behind others such as the Sub-Saharan Africa and East Asia regions, which grew by two per cent and 8.3 per cent, respectively.