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Increase in jobs in Mexico could take place until 2023

The recovery of employment in Mexico It will take at least three years, and what can be seen is a cyclical response from the market, in addition to the worst year for the country in terms of indicators, such as labor and wage poverty, according to information from the Center for Formal Employment Studies (CEEF).

The National Survey of Occupation and Employment (New Edition) (ENOEN) recently revealed that 426,000 people left the Economically Active Population (EAP), to join the ranks of unemployment.

Likewise, of the 9.5 million people who started working, 8.5 million did so in the informal economy. Because of this, the employed population was reduced by 95,000 people, and the inactive population increased by 375,400 people.

Meanwhile, the country received 2021 with a maximum registered level of working poverty since its measurement began in 2005, increasing 8.8 percentage points, going between the first and third quarter of the year from 35.7 to 44.5 percent, according to figures from the Coneval, which means that 4 out of 10 people do not have enough salary to buy the basic basket.

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Against this background, the data released by ENOEN do not fully measure the real challenge due to the following points: The population continues to grow around 1.5 million per year, therefore, the recovery goes in two directions: those that were lost, plus those that were ceased to be created, totaling 4.5 million jobs that must be rescued.

A slow recovery is seen due to factors such as the lack of incentive to Foreign direct investment (FDI), which fell 0.7% in the first half of 2020, according to figures from the Ministry of Economy (SE).

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In Mexico, there are about 4.2 million MSMEs, which contribute around 52% of the Gross Domestic Product (GDP) and generate 70% of formal employment, however, they are not receiving support to make their permanence in the market sustainable.

With the recent initiative to reform subcontracting, as it has been proposed, a figure that was already regulated by the Federal Labor Law (LFT) is damaged, and with which 2 million more jobs are put at risk for Mexicans .

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