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Mexico recovers almost half a million jobs at the cost of informality

2021-07-26T20:36:34.518Z


Unemployment fell in June compared to last year during the lockdown, but stagnated after the economic recovery. 8 out of 10 jobs created in the pandemic are informal


Merchants in the market in the center of the city of Campeche.Monica Gonzalez / El País

Mexico recovers the job it lost during the harshest months of confinement in 2020, although it still has not managed to reach pre-lockdown levels.

The covid-19 pandemic represented a hard blow from which the economy barely recovers after the reopening of companies, restaurants and shops and seems to be stagnating in terms of the creation of new jobs.

The impact of the crisis continues.

During the month of June 2021, the country registered the creation of 483,627 new jobs, compared to the same period of the previous year.

The unemployment rate in Mexico is equivalent to 4%, which means that 2.3 million people of working age were unemployed in June 2021, according to figures from the National Institute of Statistics and Geography (Inegi).

“Almost a million people have not joined the Economically Active Population.

The participation rate was 58.2% in June 2021, compared to the confinement period, but below 60.3% in the first quarter of 2020 ″, said the president of Inegi, Julio A. Santaella.

More information

  • Mexico recovers 80% of the jobs lost by the pandemic at the cost of more precariousness

  • From centennials to 'pandemials': the truncated future of young people in America

  • Seven out of 10 unemployed by the pandemic in Mexico are women

Between April 2020 and June 2021, Mexico's economic recovery has been forged in informality.

Of the 12.3 million jobs that were created in this period, 80% were precarious jobs without benefits, Social Security contributions or access to health services.

The informality rate at the end of the first semester of the year stands at 55.4% of the entire employed population in the country.

Of this total number, 69% are men and 31%, women.

In total, 30.5 million people are vulnerable to employment due to the nature of the economic activity to which they are engaged.

To this phenomenon is added the closure or restructuring of companies. The disappearance of the entrepreneurial muscle is seen in a slight fall of two points in the number of subordinate and paid workers, and the increase of two points in the independent or self-employed workers without hiring employees. This last category of occupation rose by 2.6 million people, compared to the same period in 2020. People between 25 and 44 years of age are the most affected by unemployment at the end of the sixth month of the year, while youth unemployment of 15 at 24 years it is the one that grows the most compared to June 2020, with an increase of 5.5%.

The services sector continues to be the largest generator of employment in the country with 43.2% (23.8 million people) working in it; followed by commerce that employs 10.4 million; the manufacturing industry, with 8.9 million; agriculture and livestock, 7.2 million people and the construction industry that after the recovery after the pandemic employs 4 million people.

As a consequence of an economic recovery slower than expected, the Mexican Government has decided to raise the epidemiological alarm without affecting the activity of any sector.

Recently, Mexico City was the one that raised the epidemiological traffic light to orange category without making any variation in prevention measures, despite the fact that during the first two waves of confinement, the color orange meant reducing capacity between 30% and 50 %, dry law and closing of bars and gyms.

The authorities have indicated that their main priority is to call on the population to be responsible for infections and to encourage vaccination.

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Source: elparis

All news articles on 2021-07-26

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