Where is the labour market going?

*Raymond Torres is Director of Macroeconomics at the Savings Banks Foundation (FUNCAS) - Spain

The increase of the unemployment rates in Europe and the percentage of informal labour in Latin America strongly reflect the challenges that the labour market has been facing. The polarisation of the labour market is shaped by two interconnected factors. In the first place, the mutations within the labour market undermine the social pact. Secondly, the digitalisation of the economy reduces the labour demand. The refoundating of the institutional framework and the modification of economic and social policies constitute two dimensions that can be helpful in order to face such challenges. Read paper