Protecting employment sources
A man offers his services as a plumber in Mexico City - Photo: Jaime Puebla/AP

Protecting employment sources

23/01/2019
09:33
Mexico City
Editorial
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Any person or company that allocates its resources to create jobs, should have the certainty that Mexico is the right place for it

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One of the goals of any government, whether municipal, state, or federal, should be to generate the proper conditions to create jobs, mainly bureaucratic jobs. This way, any person or company that allocates its resources to create jobs, will have the certainty that Mexico is the right place for it.

In Mexico, the situation surrounding jobs is widely known: high informality rates, precarious work, with scarce social benefits, and low wages; in regards to this, the government established a plan to help the minimum wage to recover its purchasing power.

In the last two years, the unemployment rates were relatively stable, with a rate under 3.6%, in regards to the economically active population. Nevertheless, yesterday, the National Statistics and Geography Institute (INEGI) revealed that in December 2018, there was an increase in the unemployment rate, the highest level in the last two years.

According to experts, there are two reasons: the loss of formal jobs, which usually takes place in December, when many temporary contracts end, and the freezing of job positions in the federal government.

They hope this is a circumstantial upturn, the result of a government change, but in this case, it's necessary that the new administration has a clear and defined plan that it will adopt to encourage the creation of jobs.

In the last decades, the country adopted a diversification of routes: it was placed among the 10 main producers of vehicles; it then opted for developing an aviation industry that is starting to emerge in Querétaro, which is supplemented by tourism, another important employment source.

Sectors such as the ones mentioned above should perceive a genuine interest from the government that shows they will be backed when they face adverse situations and to know what is demanded from them, in regards to their tax and labor obligations.

The evolution of the unemployment rates should be monitored, although, for the different government levels, it should be clear that the creation of jobs is not a matter exclusive to the federal government. It's becoming more common that, on their own accord, Governors promote their states to attract investment. The municipalities should start offering results in this regard. It's a collective task.

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