It is vital to analyze this problem without bias or prejudice, but from reality and casuistry. There are certain policies that have been shown to be much more effective in improving job creation and increasing income in different countries, regardless of their political orientation. In general, liberal and market economies tend to have higher per capita income and GDP levels than socialist economies. This is because liberal economies promote investment, innovation, competition, and efficiency.
The data shows an immense differential reality.
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The average salary of workers is much higher in the USA than Latin American socialist-oriented countries.
The average salary of a worker in the United States is around US$56,000 per year, according to data from the US Bureau of Labor Statistics. This number varies depending on the industry, region, and level of education and experience of the worker.
In the case of Florida, the average annual salary is around US$53,000 per year, according to data from the same source. Again, this can vary depending on the industry and other factors.
In Latin America, average salaries vary significantly between different countries and regions. According to data from the International Labor Organization (ILO) for 2020, the average monthly minimum wage in Latin America was around $300, although this can vary widely between countries. Some countries, such as Uruguay and Chile, have higher average wages than others, while other countries, such as Bolivia and Paraguay, have lower average wages. It is important to note that these data are only an approximation and can vary significantly depending on the industry and the level of education and experience of the worker.
Data from Statista.com, based on Bloomberg surveys.
*On this information from March 2023, Argentina in April drastically lowered its salary even further, following the growth of the blue dollar quotation (real parallel market).
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The number of hours worked by an average worker varies depending on the country and region. In general, workers in the United States and Florida work more hours on average than in many Latin American countries.
According to data from the International Labor Organization (ILO) for 2021, the average working hours per week in Latin America are around 40 to 45 hours, although this can vary widely between countries. For example, in Mexico, the average working hours per week were around 43 hours, while in Colombia and Argentina it was around 48 hours.
In the United States, the average working hours per week are around 34 to 38 hours, although this can vary depending on the industry and the type of work. In Florida, the average working hours per week were similar to those in the United States in general, around 35 to 38 hours per week.
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The obsolescence of labor laws and the incoherence of unions generate more informality, work without legalization, and less formalization of social benefits in Latin America than in liberal economies. In addition, real unemployment rates, not "declared" ones, are drastically higher in countries such as Argentina, Venezuela, Colombia, Nicaragua, Bolivia, and Peru.
Unemployment rates
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The average unemployment rate varies by country and region. In general, the United States and Florida have lower unemployment rates compared to many Latin American countries. According to data from the US Bureau of Labor Statistics, the unemployment rate in the United States in April 2023 was 3.5%. In Florida, the unemployment rate in March 2023 was 3.9%, but it has been decreasing and will be below the US average in May, according to data from the Florida Department of Economic Opportunities.
In Latin America, unemployment rates vary widely among countries. According to data from the ILO for the year 2021, the average unemployment rate in Latin America was 9.6%. Some countries, such as Mexico, had a lower unemployment rate, while others, such as Argentina, had higher unemployment rates. Although the latest information from Argentina shows a rate of 6.3% (according to Statista, it currently exceeds 9%), these data have not been considered accurate, as many people in Argentina are not actively seeking work due to the large number of social welfare programs available. This situation also occurred in Venezuela, which now has an unemployment rate higher than the projected rate in 2019 of 44%, a country that no longer provides information and, according to the UN, has a poverty level exceeding 87%.
Data from Statista.com.
What should Latin America, regardless of any political party ideology, do to have a real plan for job creation, wealth and living standards improvement for its population?
The following are the key policies that can help improve job creation and increase incomes in Latin America, based on successful policies of other countries outside of the region such as Ireland, Australia, New Zealand, United Arab Emirates, Saudi Arabia and most of the Nordic countries.