Creation of formal employment collapses 88% under AMLO administration

In the fifth month of the year, the IMSS reported a contraction in the creation of jobs, given the economic weakness that leads to a delay in the plans of companies to invest and hire staff.

The generation of formal employment in Mexico recorded a strong collapse in May, given the weakness in the economy, which leads to a delay in the plans of companies to invest and hire staff.

The number of registered workers in the Mexican Institute of Social Security (IMSS) was 20 million 383 thousand in the fifth month, which implied an increase of just 3 thousand 983 places compared to April, a figure that contrasts significantly with the 33 thousand 966 jobs created in May 2018. This is equivalent to a contraction of 88 percent, according to the records of the institute and released on Wednesday.

The creation of jobs during the fifth month of 2019 was the result of the decrease of 36 thousand 861 temporary jobs accompanied by the creation of 40 thousand 664 permanent jobs, explained behavior, mainly due to cyclical effects.

Meanwhile, in the last 12 months 474 thousand 838 new jobs have been registered, which is equivalent to an annual growth of 2.4 percent, the worst variation since March 2010 .

“The economic slowdown, the delay of works and the lack of continuity in productive projects have impacted several strategic sectors of the Mexican economy, such as construction and the countryside, so if these projects are recovered we could expect the negative trajectory that The job has changed, “said Jesuswaldo Martínez, a researcher at the Belisario Domínguez Institute.

He stressed that the sharp drop in casual employment was largely due to the lack of positive expectations that private companies have when investing.

“This leads decision-makers to maintain a more prudent contracting policy until the growth expectations of the country improve and are safer,” he said.

In turn, Héctor Márquez Pitol, general director of institutional relations at ManpowerGroup, indicated that the largest loss of casual jobs was focused on the agricultural sector.

“The month of May was terrible for the employment figures of the country, since 37 thousand temporary jobs were lost, of which at least 24 thousand were from the countryside, although we should not overlook that this phenomenon is seasonal and characteristic of the cycle agricultural, “he added.

The worst performance since 2010

Between January and May, 303,455 jobs were generated, 38 percent less than in the same period of the previous year, the worst performance for the same period since 2010.

IMSS records indicate that employment was led by the transport and communications sector , with an annual advance of 4.8 percent, followed by the transformation industry, with 3.1 percent and services for companies, with 2.9 percent .

On the contrary, it fell 3.4 percent in the extractive industry and 2.1 percent in construction.

Raymundo Tenorio, professor at Tec de Monterrey, explained that the lowest rates of job creation are due to the fact that private companies in Mexico significantly reduced their available productive capacity in the face of economic weakness.

“The Mexican economy is in a recessive cycle that has affected both medium and large companies, so we have been able to observe constant personnel cuts, where the lowest generation of construction and retail jobs stands out,” he said.

The Bank of Mexico recently revised its expectations of formal employment generation for this year, at a range of between 530 and 630 thousand, an average of 580 thousand, less than the 660 thousand reported in 2018.

Nayarit reported the highest increase, with 7 percent, while in Campeche and Querétaro it rose 6.1 percent, in each case. Only Guerrero, Chiapas, Durango and Morelos registered a decrease in this indicator.

On the other hand, the IMSS reported that the Ministry of Labor and Social Security registered 609 thousand 300 people linked to the Youth Building the Future Program , that is, that already chose a workplace, of which 481 thousand 548 already have medical service in the IMSS.

Tenorio considered that the austerity measures and the uncertainty that the current administration has executed only provoke distrust in the private sector, which at the end of the day, are those that generate the vast majority of jobs in the country.

To create formal employment in sufficient quantity, that is, one million 200 thousand vacancies per year, investment is required, and the only way to attract it is to provide security, rule of law, non-corruption and legal security, said Mónica Flores, president of ManpowerGroup Latin America

Source: el financiero, el universal

The Mazatlan Post

Facebook Comments