Latin America has fewer jobs highly exposed to Al

Latin America and the Caribbean has long been a region with one of the most informal labor markets. A large part of the workforce is outside of the formal economy, leaving many people without access to benefits and protections.

Informal businesses are typically small, have limited access to financial and legal systems, and struggle to attract investment. They are also less likely to adopt new technologies because they lack the talent and scale that makes such innovation viable.

As the Chart of the Week shows, less than half of the region’s jobs are likely to be highly impacted by AI. This is lower than for advanced economies like the United Kingdom or United States, and is mostly due to the large size of the informal sector. Overall in the region, more than half of all jobs are informal. In some countries, like Bolivia, Peru and Honduras, the share of informal jobs exceeds two-thirds, according to International Labour Organization data.

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