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Labour Market Profile Colombia – 2020/2021

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Labour Market Profile Colombia – 2020/2021 Labour Market Profile Colombia – 2020/2021 Danish Trade Union Development Agency This updated profile provides a comprehensive overview of the labour market situation in the country. Danish Trade Union Development Agency Colombia Labour Market Profile 2020/2021 PREFACE Danish Trade Union Development Agency (DTDA) is the Primary sources of data and information for LMPs are: development organisation of the Danish trade union movement. This agency was established in 1987 by the • As part of programme implementation and two largest Danish confederations – Danish Federation monitoring, national partner organisations provide of Trade Unions (Danish acronym: LO) and Danish annual narrative progress reports, including Confederation of Professionals (Danish acronym: FTF). information on labour market developments. These confederations merged to become the Danish Furthermore, specific types of data and information Trade Union Confederation (Danish acronym: FH) in relating to key indicators are collected using a January 2019. Correspondingly, former known as unique data collection tool. LO/FTF Council was changed to DTDA. • National statistical institutions and international The work of DTDA is in line with the global Decent Work databanks are used as a source for collection of Agenda (DWA) based on its pillars: creating decent jobs, general (statistical) data and information such as guaranteeing rights at work, extending social protection, ILOSTAT and NATLEX, World Bank Open Data, and promoting social dialogue. The overall development ITUC Survey of Violations of Trade Union Rights, objective of DTDA’s interventions in the South is to the U.S. Department of State as well as other eradicate poverty and support the development of just international recognised labour-related global and democratic societies by furthering the DWA. indexes. DTDA works in partnership collaboration with trade union • Academia and media sources (e.g. LabourStart, organisations in Africa, Asia, Latin America, and the national news, among others) are furthermore used Middle East. The immediate objective of the programme in the available research on labour market issues. implementation is to assist the partner organisations in becoming change-agents in their own national and Labour Market Profiles for more than 30 countries are regional labour market context, capable of achieving available on DTDA’s website: tangible improvements in the national DWA conditions, https://www.ulandssekretariatet.dk/. and towards the achievement of the labour-related Sustainable Development Goals (SDGs). DTDA prepared the Labour Market Profile in collaboration with the DTDA MENA sub-Regional Office The format of the Labour Market Profile (LMP) provides in Tunisia. If any comments or questions arise to the a comprehensive overview of the labour market situation profile, please contact Mr. Kasper Andersen in the individual countries of engagement. The profile is ([email protected]) from DTDA. divided into nine thematic sections describing the economic performance, labour legislation, social Cover photo covers Cerrejón, a large open-pit coal mine partners, social dialogue, violations of trade union rights, in Colombia, located in the southeast of the department working conditions, the general status of the workforce, of La Guajira, close to the border with Venezuela. It was education, and social protection. photographed by Carsten Flint Hunneche In the framework of DWA and SDGs, LMPs are following Address: several central indicators addressing aspects of labour Ulandssekretariatet market development, especially the unionism evolution, Islands Brygge 32D social dialogue and bi-/tri-partite mechanisms, policy DK-2300 Copenhagen S development and legal reforms, status vis-à-vis ILO Denmark conventions and labour standards, among others. Telefon: +45 33 73 74 40 http://www.ulandssekretariatet.dk/ Page i Danish Trade Union Development Agency Colombia Labour Market Profile 2020/2021 EXECUTIVE SUMMARY Colombia has been among the fastest-growing not changed as rapidly. The youth unemployment rate economies in Latin America, and in May 2020 formally fell but remained relatively high, challenged by skill entered the Organisation for Economic Co-operation and mismatch and insufficient job creation. Only a small Development (OECD). The minimum wage experienced minority of unemployed workers receive unemployment an upward trajectory during the 2010s, supporting the benefits. Share of manufacturing in the GDP is nowadays advancement of the middle-class among the employed. half of what it was in the 1980s, and this sector is It remains one of the lowest minimum wages in South grappling with competing in global markets. Labour America, though. Income inequality continues to be productivity was rising during the 2010s, which rampant. The economy entered a deep recession in 2020 contrasted the diminishing regional trend, benefitted caused by the global coronavirus (COVID-19) pandemic. from a lower dependency of exports and boundless low- This condition mounted an overwhelming challenge on all paid workforce. fronts, and a series of employment-related measures were launched. For example, the main economic sectors Migration flows also altered during the last decades. The were in quarantine that triggered a high increase in the long-standing low-intensity civil conflict in the country unemployment rate, which signalled an upsurge in drove one of the highest internally displaced persons in poverty. Progress in the education system was stalled. the world. The urbanisation rate rose and reached The scope of a system of subsidies for those who are relatively high, at 81%. Net migration shifted worst off was far below the minimum wage. significantly during the 2010s due to the Colombian returnees as part of settling the internal conflict and an Central international trade agreements created attention extremely high influx of Venezuelans. This situation has to addressing workers’ rights in the country during the generated further demand for job creation and access 2010s. Although it prompted legal changes, the results to social systems. Personal remittances have not been an reached just partial progress or even some with no essential part of the economy and significantly lower progress due to the persistent rigid labour regulations. than foreign direct investments. For example, at the branch-level in the private sector, the application of outsourcing methods stymied collective Informal employment was on a declining trend at the bargaining. Also, up to 95% of Colombian firms are beginning of the 2010s, supported by economic growth micro-enterprises that most often operate in the informal and specific law reforms. The rate was stalled since 2014 economy, contesting the improved measurements, e.g. at around 62% of employment due to the economic labour inspections. On the positive side, a novel process slowdown, migration challenges, stiff labour regulations, of collective bargaining in the public sector increased and general lack of awareness or incentives among significantly during the 2010s. informal workers concerning labour and business regulations. Tripartite institutions structures are performing. Colombian employers are ranking cooperation in labour- Significant labour gender gaps are echoed in women’s employer relations at medium-level. For the last three relatively high youth not in employment, education, or decades, the trade union membership rate was training (NEET) rate, which is associated with cultural negatively affected by the application of controversial stereotypes. Despite the impressive improvement in employment methods and anti-unionism measures. Even enrolment rates on all levels during the 2010s, the in the 2010s, the trade union density punctured, reaching education system continues to be challenged by around 12% of employees in 2019, which was four inadequate school infrastructure, alarming dropout rates, percentage points lower than Latin America average. and a high degree of teacher absenteeism. Relatively Although the number of registered cases concerning fewer students are enrolled in vocational training in violations against unionists dropped during the 2010s, it comparison to the regional average. continues to be unacceptably high. The country stays ranked at the bottom of the Global Rights Index. Colombians social protection coverage improved significantly in the last decades, especially in social Colombia’s population structure transformed: gradually, health coverage boosted by an upsurge in public health the fertility rate fell, and the share of generations older expenditure. The relatively low pension coverage at than 60 years increased, which puts mounting pressure 25% among employed is stuck in insufficient enforcement on the social protection system. While the workforce is of employers’ obligation to pay the pension contribution getting better educated, the labour market structure has and widespread informality. Page ii Danish Trade Union Development Agency Colombia Labour Market Profile 2020/2021 The table below presents key labour market indicators in In the next page, Page iv, the second table presents an the framework of the Decent Work Agenda (DWA) that overview of the current value and targets of the are related to central unionism issues. Sustainable Development Goals indicators’ in relation to the labour market issues. Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Colombia Creating decent jobs The labour market policy reform
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