The Significance of Public Jobs in Latin American Development

The public sector is a key employer in Latin America, offering many formal jobs. Its role raises two questions.

First, how much does it contribute to regional jobs? Second, what costs come with it?

Andrés García, a university professor, shares insights. He notes that job levels vary across countries. Brazil, Costa Rica, and Chile see more than 10% employment in this sector.

In contrast, Colombia, Ecuador, and Peru have less. Colombia’s figure is under 5%.

García points out that financial challenges may force cuts in public jobs. This is happening in Argentina now.

Yet, the public sector is often the first to hire, especially noticeable during the COVID-19 crisis.

It was vital for reviving the economy through projects in civil works and infrastructure.

As World Bank data shows, public salaries make up 28.3% of government spending, a bit over the global rate.

But the share of GDP for these salaries is 8.8%, just below the worldwide figure.

The bank also states that public jobs account for 11% of all employment. This includes 20% of paid work and 27% of formal jobs.

The International Labour Organization adds that in 2022, these jobs will account for 10.5% of all work in the region.

Compared globally, public employment is higher elsewhere, offering 17% of all jobs.

Breaking Down Public Jobs:

The World Bank finds that 7% of these jobs are in basic roles, and 23% are in administration. High-ranking positions make up 33%, technicians 30%, and professionals 54%.

Most paid public jobs are in government administration (40%), then education (31%), other areas (16%), and health (13%).

Women hold 51% of these positions, well above the private sector’s 38%.

Nordic Countries vs. Latin America:

In 2021, Norway, Sweden, and Denmark led in public employment rates. Meanwhile, Japan and South Korea were at the bottom among OECD nations.

García comments that a big public sector doesn’t mean inefficiency. Other factors, like productivity and trust in institutions, matter more.

In OECD nations, public jobs greatly contribute to employment. Norway leads with over 30%.

The OECD average was 18.63% in 2021, slightly higher than in 2019.

Mexico and Costa Rica saw increases in public employment from 2019 to 2021.

This global trend reflects a steady rise in public jobs alongside a small drop in overall employment, the OECD reports.

This shows the public sector’s significant role in job creation, impacting economies and lives across Latin America and beyond.

In OECD countries, the public sector contributes significantly to total employment, with notable percentages in:

Norway: 30.92%

Sweden: 29.27%

Denmark: 28.04%

Finland: 25.41%

Estonia: 23.43%

Lithuania: 22.47%

France: 21.13%

Latvia: 21.13%

Israel: 20.93%

Canada: 20.68%