The globalization of Latin American and Caribbean economies, is underway in a conte,xt of both economic integration strategies and multilateral1,y agreed upon openness. The process is running parallel to structural adjustments that were implemented to correct existing imbalances and to adapt to the new conditions in a changing world. Two additional processes, privatization and deregulation, have been introduced together with globalization, in a framework where macroeconomic adjustments also play un important role.
Contrary to what is said on occasion, the process o f adjustments in general and macroeconomic adjustments in particula~ is not over yet. It is still going through severa1 phases, with recurrent e,xternal restrictions making it necessaiy to continuously apply new adjustments, therefore converting it into un ongoing process.
In this context, the labour issue emerges in two dimensions. The first dimension is un outcome of the globalization and adjustment processes which often time aflect employment,
wages, labour relations and the coverage of social protection systems negatively in the short term. This exacts labour policy proposals that compensate the groups who are more vulnerable to the adjustment and produce a new balance between economic eficacy and social progress. The second dimension surfaces as un important part of accommodating to the new conditions brought on by globalization, demanding greater adaptability of the labour market performance.