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Mexico: 65.8% of the informal jobs created in the last 5 years

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by IDWFED published Apr 22, 2012 12:00 AM
Contributors: Núcleo informativo
In Mexico, between the last trimester of 2006 and the respective one of 2011, 65.8 percent of the new employments that were created was in the informal economy. Also unemployment grew 33.3 percent in that period, reaching the number of 2.7 million people, who added to those already in that condition, totalized almost nine million inhabitants.

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MEXICO -

In Mexico, between the last trimester of 2006 and the respective one of 2011, 65.8 percent of the new employments that were created was in the informal economy. Also unemployment grew 33.3 percent in that period, reaching the number of 2.7 million people, who added to those already in that condition, totalized almost nine million inhabitants.

In the study Unemployment and Informal Employment in Mexico 2006–2011, elaborated by the Center of Multy Disciplinary Analysis (CAM) of the Faculty of Economy of the National Autonomous University of Mexico (UNAM), it was also stated that the informally employed population grew from 23.1 million to 26.4 million people, which represented 14.2 percent, that is to say, 3.2 million people more.

The analysis, elaborated jointly by Luis Lozano Arredondo, Fructuoso Matías Garcia, and Antonio Vázquez, among others, makes a methodologic distinction to measure both unemployment and informal work, between the numbers of the National Institute of Statistics and Geography (INEGI) and the criteria of International Labor Organization (ILO). In the considerations of the institute there are omissions that explain the differentials for the obtaining of the definitive numbers.

Thus, the rate of unemployment used by the INEGI is not pertinent to approach unemployment as a whole. During years, that term has been considered in official form to mark down the responsibility to measure the variable in its totality, indicated the CAM.

According to that criterion of the institute, one considers the Economically Active Population and the Population not Economically Active for the measurement of unemployment. However, according to the resolutions of the ILO, the unemployed segment is made up by adults of a specific age, who do not contribute their work to produce goods and services, in spite of being available.

For this reason, it would have to integrate a new rate to be included to the totality, and not only to the unemployed people with interest in working, established the experts.

With respect to the informal sector, this concept usually is associated to the informal commerce. Also it is common to consider that the informal employment happens only in the informal subsector of the homes, but that criterion does not include the totality. For this reason, it is necessary to distinguish what the ILO calls “informal economy” and what the INEGI considers “informal sector”, they added.

Under the concept of the organization, they must integrally include the auxiliary workers and relatives, without contract and legal or social protection in formal and informal companies; workers with informal positions in formal and informal companies.

Also, independent ones must be integrated, and employers that own their own informal companies; as those who toil in informal companies, although with formal positions, and also members of cooperatives of informal producers.

Nevertheless, the INEGI refers the informal subsector of the homes only to the domestic workers who work there, and to the producers of goods for their own final use in their homes.

According to the balance of the CAM, the informal subsector of the homes increased from 11.4 million people of the last fourth month period in 2006, to 13.9 million in the last respective period of 2011; that is to say, an increase of 22.5 percent.

In relation to those who toil in businesses non-constituted in society, the number went from 11.7 million to 12.4; that is to say, 6.1 percent more.

With respect to the unemployed population, this one grew from 6.5 million to 8.7, which represented an increase of 33.3 percent. Also the occupied population total, in the last observed fourth month period of a 2006 level of 42.8 million people, and in the respective period of 2011, 47.8 million; that is to say, 11.6 percent more.

Read this report in Spanish.

Source: Núcleo informativo

Story Type: News

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