The 21st century has been a tumultuous one for the industrial sector of different countries. The population has seen a slow but a definite rise, so has Gross Domestic Product (GDP) over the past 2 decades. The report below collects and analyses the parameters of the industrial sectors of NAFTA and MERCOSUR countries. The North American Free Trade Agreement (NAFTA) was implemented in 1994 to encourage trade between the U.S., Mexico, and Canada. NAFTA reduced or eliminated tariffs on imports and exports between the three participating countries, creating a huge free-trade zone. MERCOSUR, also known as the Common Market of the South, is a trade bloc agreement that exists between the following South American countries: Argentina, Brazil, Paraguay, Uruguay, and Venezuela. The trade bloc was established under the Treaty of Asuncion in March 1991; it was then expanded under the 1994 Treaty of Ouro Preto, which set up a formal customs union. The main objective of Mercosur is to bring about the free movement of goods, capital, services, and people among its member states. In addition to the four founding members of Mercosur and Venezuela, there are five countries with associate member status. These countries are Bolivia, Chile, Colombia, Ecuador, and Peru. As associate members, they can join free-trade agreements but do not receive the benefits of the customs union. In the report, we have considered the following variables for analysing the data: 1. Population changes 2. GDP changes 3. Wages changes 4. L changes 5. Femaledistribution 6. Unemploymentrate

1. GS F 234 DEVELOPMENT ECONOMICS ASSIGNMENT 2021
INDUSTRIAL SECTOR: LABOUR, WAGES, EMPLOYMENT
A FOCUS ON NAFTA AND MERCOSUR COUNTRIES:
(USA - BRAZIL - CANADA - PERU - MEXICO - CHILE)
TEAM MEMBERS: ID NO.
PRAYAG MOHANTY 2020A3PS0566G
ANISH DHAIMODKAR 2020B3PS0563G
SAYANTAN KARMAKAR 2020A1PS1925G

2. INTRODUCTION:
The 21st century has been a tumultuous one for the industrial sector of different countries.
The population has seen a slow but a definite rise, so has Gross Domestic Product (GDP)
over the past 2 decades. The report below collects and analyses the parameters of the
industrial sectors of NAFTA and MERCOSUR countries.
The North American Free Trade Agreement (NAFTA) was implemented in 1994 to
encourage trade between the U.S., Mexico, and Canada. NAFTA reduced or eliminated tariffs
on imports and exports between the three participating countries, creating a huge
free-trade zone.
MERCOSUR, also known as the Common Market of the South, is a trade bloc agreement
that exists between the following South American countries: Argentina, Brazil, Paraguay,
Uruguay, and Venezuela. The trade bloc was established under the Treaty of Asuncion in
March 1991; it was then expanded under the 1994 Treaty of Ouro Preto, which set up a
formal customs union.
The main objective of Mercosur is to bring about the free movement of goods, capital,
services, and people among its member states. In addition to the four founding members of
Mercosur and Venezuela, there are five countries with associate member status. These
countries are Bolivia, Chile, Colombia, Ecuador, and Peru. As associate members, they can
join free-trade agreements but do not receive the benefits of the customs union.
In the report, we have considered the following variables for analysing the data:
1. Population changes
2. GDP changes
3. Wages changes
4. L changes
5. Female distribution
6. Unemployment rate

3. 1.Population (in millions)
● There has been an increase in population among all the countries, with a significant rise in the USA,
Brazil, Mexico.
● Mexico had the fastest average growth rate of 1.33% over the time period of 2000-2020 and the
USA has the lowest with 0.78%
● USA, Brazil, Mexico have populations of more than 100 million while Canada, Peru, Chile have
populations of less than 50 million.
● From Fig.1.2, the people involved in the Labour force of the periodUSA are similar/larger than the
total population of the other 5 countries.

4. 2.GDP (in billions)
● There has been positive growth in the GDP for the above countries, over the last 2 decades.
● Peru had the highest average GDP growth over the period with an average growth of 7.38% whereas
Mexico had the lowest with 2.56%.
● Between 2007-2009, there’s a dip in the GDP curve in all countries except the USA. This can be
attributed to the Great Recession, where due to decreased demand in the market, the GDP
contracted.
● The GDPs of all the countries contracted in 2020 due to the Covid-19 pandemic with the highest
contraction of 23.06% recorded by Brazil. The USA wasn’t affected much and had the least
contraction of 2.3%.
3.Avg. income per month (in US $)
● The USA has the highest average income per month while Peru has the lowest. Peru’s
economy has a subsistence wage per person.
● Canada has a high avg. income despite its comparatively low population. They have the
potential to save and invest.
● Chile, Mexico, and Brazil have monthly wages close to $1000.
● Developed nations have a higher avg. income (>$3,000)
● Developing countries have monthly wages of around $1000.

5. 4.Labor force participation rate, total (% of total population ages
15+) (modeled ILO estimate)
● Labour participation rate indicates working people, both employed and unemployed. It is
closely related to the employment rate in this case.
● Peru has a high employment % with respect to population A number of FTAs with the USA,
China were signed during the period as well.
● The USA, Peru, Canada, and Brazil have an employment rate of around 60%.

6. 5.Labor force, female (% of total labor force)
● All countries have women’s representation in labor force, less than 50%, though Canada has
close to 50%
● Mexico lags behind in female employment but has seen a growth of 15%.
● Chile has seen the highest growth over the 2 decades
● Developing countries have seen a significant rise in female labor employment. This can be
attributed to changing mindsets, reforms, etc.

7. 6.Unemployment, total (% of total labor force) (modeled ILO estimate)
● The unemployment rate for the countries peaked during 2008-9 due to the Great Recession,
decrease in demand.
● Except for Brazil, every country’s unemployment rate was below 10% before the coronavirus
pandemic.
● COVID-19 in 2020, spiked the unemployment rates with people losing jobs, businesses having
less demand.
● Brazil’s devastating recession from late 2014 through the end of 2016 led to a decline in
formal job creation which led to an increased duration of unemployment, and a rise in
underemployment and precarious forms of work.

8. INTERPRETATIONS:
● With a high population in the workforce and a high avg.wage, the USA has a higher production
function.
● Despite it’s low population Canada has a $1.6 billion economy due to high avg. wage, more
opportunities to the women population.
● Brazil is reeling under the aftermath of it’s recession with high unemployment,low wages
despite it’s huge workforce %.
● Mexico has a sizable workforce but is a changing traditional-to-developing economy with an
increase in women in the labour market.
● Peru is still a traditional economy with high employment rate with subsistence wages resulting
in $250 million GDP
● Chile has a comparatively less population, has moderate wages and has seen a boom in
employing women labour. It suffers from unemployment due to many factors including
recession,pandemic etc.
APPENDIX
Population (in millions)
Year USA Brazil Mexico Canada Peru Chile
2000 282162411 174790340 98899845 30685730 26459944 15342350
2001 284968955 177196054 100298152 31020902 26799289 15516112
2002 287625193 179537520 101684764 31360079 27100964 15684413
2003 290107933 181809246 103081020 31644028 27372217 15849649
2004 292805298 184006481 104514934 31940655 27624226 16014972
2005 295516599 186127103 106005199 32243753 27866140 16182713
2006 298379912 188167356 107560155 32571174 28102055 16354507
2007 301231207 190130443 109170503 32889025 28333050 16530201
2008 304093966 192030362 110815272 33247118 28562321 16708255
2009 306771529 193886508 112463886 33628895 28792663 16886184
2010 309327143 195713635 114092961 34004889 29027680 17062531
2011 311583481 197514536 115695468 34339328 29264314 17233584
2012 313877662 199287299 117274156 34714222 29506790 17400359
2013 316059947 201035912 118827158 35082954 29773986 17571511
2014 318386329 202763739 120355137 35437435 30090372 17758969
2015 320738994 204471769 121858251 35702908 30470739 17969356
2016 323071755 206163053 123333379 36109487 30926036 18209072

9. 2017 325122128 207833823 124777326 36545295 31444299 18470435
2018 326838199 209469323 126190782 37065178 31989265 18729166
2019 328329953 211049527 127575529 37593384 32510462 18952035
2020 329484123 212559417 128932753 38005238 32971846 19116209
Population (in
millions) Labor force
USA 329484123 202336199.9
Brazil 212559417 125920198.6
Mexico 128932753 72782539.07
Canada 38005238 24289147.61
Peru 32971846 21487752.04
Chile 19116209 10571263.58
GDP (in billions)
Year USA Brazil Canada Mexico Chile Peru
2000 102523454640
00 655420645477 744773415932 707906744575 77860932152 51744749133
2001 105818213990
00 559372276082 738981792355 756706300590 70979923960 52030158775
2002 109364190540
00 507962487700 760649334098 772106378935 69736811435 54777553515
2003 114582438780
00 558319920832 895540646635 729336319677 75643459840 58731030122
2004 122137291470
00 669316654017
102669023827
8 782240601985 99210392858 66768703498
2005 130366402300
00 891630177251
117310859877
9 877476221382 122964812046 76060606061
2006 138146114140
00
110764028961
5
131926480959
1 975387131716 154788024806 88643193062
2007 144518586560
00
139708434995
6
146882040778
3
105269628227
9 173605968179 102170981144
2008 147128440840
00
169582456598
3
155298969072
2
110998906358
7 179638496279 120550599815
2009 144489330250
00
166701978358
5
137462514215
7 900045350649 172389498445 120822986521
2010 149920527270
00
220887164620
3
161734336748
6
105780129558
4 218537551220 147528937029
2011 155425811040
00
261620098039
2
179332663017
5
118048960195
8 252251992029 171761737047
2012 161970073490
00
246518867441
5
182836648152
2
120108998701
5 267122320057 192648999090
2013 167848491960
00
247280691990
2
184659742183
5
127444308471
7 278384332694 201175469114
2014 175271636950
00
245599362515
9
180574987844
0
131535118352
5 260541637328 200789362452
2015 182383005690
00
180221437374
1
155650881621
7
117186760819
8 243919079437 189805300842
2016 187450756870 179570016899 152799474190 107849065162 250440149691 191895943824

10. 00 1 7 5
2017 195429791830
00
206350786488
7
164926564424
4
115891303579
6 277034675516 211007207484
2018 206118609340
00
191694701406
8
172185333287
0
122234880728
3 297571693064 222574697256
2019 214332246970
00
187781051426
0
174157639390
6
126887052716
0 279385487345 228470919606
2020 209366000000
00
144473325897
2
164403728648
1
107616331617
5 252940023046 202014363787
Employment to population ratio, 15+, total (in %) (modeled ILO estimate)
Year Peru USA Canada Brazil Mexico Chile
2000 63.51 63.77 60.81 57.75 58.32 50.44
2001 66.51 62.92 60.65 58.15 57.74 49.84
2002 68.27 61.9 61.24 58.94 57.08 49.63
2003 69.66 61.39 61.98 58.55 57.15 50.4
2004 71.26 61.43 62.19 59.75 57.37 50.88
2005 69.13 61.74 62.16 60.02 58.42 51.91
2006 72.37 62.14 62.37 60.27 59.12 52.77
2007 74.85 61.97 63.01 60.18 59.14 53.71
2008 74.98 61.21 63.1 60.82 58.68 54.54
2009 75.46 58.36 61.2 60.24 57.68 53.19
2010 76.47 57.45 61.25 59.73 57.5 55.33
2011 76.01 57.36 61.42 59.19 57.61 57.12
2012 76.1 57.96 61.42 59.67 58.43 57.49
2013 75.31 57.89 61.54 59.7 58.23 57.88
2014 74.77 58.36 61.22 59.64 57.72 57.84
2015 73.61 58.73 61.08 58.65 58.14 58.04
2016 72.89 59.13 60.91 56.39 58.33 57.84
2017 74.5 59.58 61.43 55.84 58.41 58
2018 75.1 59.89 61.45 56.15 58.71 57.97
2019 75.5 60.27 61.86 56.76 59.28 57.81
2020 61.1 56.31 57.86 51.14 53.79 50.78
Labor force participation rate, total (% of total population ages 15+) (modeled ILO
estimate)
Year Peru USA Canada Brazil Mexico Chile
2000 67.4 66.42 65.27 64.1 59.91 55.91
2001 70.57 66.05 65.37 64.33 59.29 55.01
2002 72.47 65.7 66.33 65.03 58.85 54.51
2003 73.16 65.3 67.06 65.05 59.19 55.03
2004 74.93 65.02 67 65.74 59.73 55.4
2005 72.66 65.04 66.67 66.37 60.58 55.74
2006 75.59 65.15 66.58 65.96 61.3 56.88
2007 77.9 64.97 67.06 65.65 61.37 57.35
2008 77.95 64.97 67.23 65.64 61.05 58.55

11. 2009 78.38 64.31 66.78 65.85 60.94 58.35
2010 79.08 63.57 66.62 64.73 60.72 58.65
2011 78.58 63 66.41 63.59 60.75 59.95
2012 78.4 63.05 66.25 64.29 61.43 59.69
2013 77.8 62.5 66.22 64.17 61.24 59.73
2014 76.97 62.2 65.76 63.9 60.64 59.97
2015 75.82 62.01 65.61 64.05 60.76 59.85
2016 75.44 62.16 65.49 63.79 60.67 59.62
2017 77.08 62.29 65.59 64.06 60.48 59.89
2018 77.56 62.31 65.26 64.05 60.7 59.84
2019 77.86 62.57 65.57 64.46 61.42 59.58
2020 65.17 61.41 63.91 59.24 56.45 55.3
Rate
Brazil 59.24
Canada 63.91
Chile 55.3
Mexico 56.45
Peru 65.17
USA 61.41
Labor force, female (% of total labor force)
Year Canada USA Peru Brazil Chile Mexico
2000 45.70263858 45.5591294 41.35761041 39.96456966 34.96504554 33.56603627
2001 45.85049445 45.61770006 43.25873656 40.65654084 34.61306097 33.32767914
2002 46.0709402 45.67300861 43.70118445 41.30381187 34.6904604 33.81887369
2003 46.33018948 45.81929539 44.49006882 41.55852257 35.6463424 34.25100698
2004 46.44866238 45.75639805 44.75046549 41.95397666 36.62202429 34.9595332
2005 46.41924082 45.7895841 44.72075308 42.44108772 37.12793648 35.43718881
2006 46.67405934 45.76868896 45.07830915 42.49415194 37.37864732 36.02140594
2007 46.85596039 45.82785184 45.57166253 42.51408844 37.94014592 36.30900032
2008 46.80079426 45.97261272 45.68812948 42.45620859 38.98595705 36.35163173
2009 47.03204717 46.17637454 45.68321686 42.69913753 39.43285386 36.84130466
2010 47.13420449 46.18396637 46.21299362 42.35058257 39.80602866 36.81753462
2011 47.09299288 46.11519429 46.06319539 41.99413069 40.57546041 37.07751477
2012 47.22646344 45.94030501 46.03224394 42.26633589 40.79953808 37.56467736
2013 47.31362747 45.912403 46.07136164 42.28568543 41.07032661 37.70409295
2014 47.18991571 45.96452931 45.97208758 42.3803816 41.39328737 37.24375158
2015 47.05309414 45.86526644 45.63420545 42.71812106 41.31568004 37.47973324
2016 47.17307271 45.87084209 45.83454894 42.86628449 41.58156778 37.57326142
2017 47.27206712 46.02558447 45.77312349 43.38080331 41.87670062 37.40909858
2018 47.3633609 46.05997764 45.86496556 43.57820175 42.22438555 37.69979125
2019 47.2403161 46.16362679 45.80471579 43.89710831 42.44293562 38.48873994

12. Female % in
labor force
Canada 47.2403161
USA 46.16362679
Peru 45.80471579
Brazil 43.89710831
Chile 42.44293562
Mexico 38.48873994
Unemployment, total (% of total labor force) (modeled ILO estimate)
Year Brazil Canada Chile Mexico Peru USA
2000 9.9 6.83 10.49 2.65 5.78 3.99
2001 9.61 7.22 10.39 2.63 5.76 4.73
2002 9.37 7.67 10.17 3 5.8 5.78
2003 9.99 7.57 9.77 3.46 4.79 5.99
2004 9.11 7.19 10.16 3.94 4.9 5.53
2005 9.57 6.76 9.34 3.56 4.86 5.08
2006 8.64 6.32 9.02 3.57 4.26 4.62
2007 8.33 6.04 8.43 3.63 3.92 4.62
2008 7.34 6.14 9.29 3.87 3.82 5.78
2009 8.52 8.34 11.31 5.36 3.73 9.25
2010 7.73 8.06 8.42 5.3 3.3 9.63
2011 6.92 7.51 7.34 5.17 3.27 8.95
2012 7.19 7.29 6.66 4.89 2.94 8.07
2013 6.98 7.07 6.21 4.91 3.21 7.38
2014 6.66 6.91 6.67 4.81 2.85 6.17
2015 8.43 6.91 6.51 4.31 2.92 5.28
2016 11.6 7 6.74 3.86 3.38 4.87
2017 12.82 6.34 6.96 3.42 3.35 4.36

13. 2018 12.33 5.83 7.23 3.28 3.18 3.9
2019 11.93 5.66 7.29 3.48 3.03 3.67
2020 13.67 9.48 11.51 4.71 6.24 8.31
2018 2019 2020
Brazil 12.33 11.93 13.67
Chile 7.23 7.29 11.51
Canada 5.83 5.66 9.48
USA 3.9 3.67 8.31
Mexico 3.28 3.48 4.71
Peru 3.18 3.03 6.24
Fig.3 Avg. income per month (in US $); 2019
Avg. income
per month
USA 5,378
Canada 3,628
Chile 1,123
Mexico 707
Brazil 654
Peru 383.26