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Challenges and opportunities of the labor market in Mexico – El Financiero

Challenges and opportunities of the labor market in Mexico – El Financiero

Expert in Labor Law from Santamarina and Steta.

In recent months, we have seen how the Mexican labor market has given warning signs. From the drop of more than 626 thousand jobs in August, according to INEGI, to the recent IMSS report indicating that September closed with the lowest number of formal jobs in the last 15 years, it is evident that we are going through a critical moment. However, far from focusing only on the negative, it is essential to analyze the causes, but also the opportunities that are presented to us.

The reduction in formal jobs and the increase in informality are symptoms of a deeper problem: the lack of job creation that is aligned with the needs of an economically active population that has not stopped growing. While the government of former President Andrés Manuel López Obrador generated 2.2 million formal jobs, the active population increased by 5.5 million, which means that more than three million people were unable to access formal jobs. This imbalance is not only a problem of numbers, but of job stability and quality of life for millions of Mexicans.

Informality continues to be a reality for a high percentage of the population, with consequences that affect both workers and the economy in general. The lack of benefits, social security and stability limits the development possibilities of millions of people, and although the formal figures are worrying, we must look at alternatives and solutions that can improve this situation.

In this context, we must recognize the areas that still generate employment and present opportunities for growth. Manufacturing, for example, remains one of the most resilient sectors, creating more than 388 thousand jobs in August, while the restaurant sector also showed positive signs. These examples show us that there are sectors that, despite the difficulties, continue to support formality and the creation of jobs. Our challenge lies in identifying and replicating these types of models in other sectors.

However, we cannot lose sight of the fact that the greatest challenge is to promote sustained and widespread growth in formal employment. Formal employment not only provides stability and benefits, but is essential for the economic sustainability of the country. This is where collaboration between workers, employers and government is crucial. We must generate public policies that promote labor formalization and the creation of quality jobs. This not only implies improving the conditions for those looking for work, but also facilitating access for companies to mechanisms that allow them to generate employment in a sustainable way, that is, not seeing the business sector as an entity contrary to the interests of the population and of the government, but quite the opposite, it is a sector that, through employment, with a legal framework that provides certainty and promotes entrepreneurship, must generate well-being and social permeability.

In this sense, it is also important to talk about the initiative to reduce the working day to 40 hours a week. Although the proposal has a positive intention, we must ensure that all stakeholders involved are considered. Reducing working hours can represent an improvement in the quality of life of workers and their productivity, but its implementation must be careful so as not to discourage the creation of new jobs. An in-depth analysis is necessary that takes into account the particularities of each sector and that allows a balance between the rights of workers and the economic viability for employers.

Employment in Mexico faces a decisive moment. The recent numbers may be worrying, but they are also a call to action. The future of the labor market depends on our ability to adapt to new realities and find solutions that promote the development of formal, quality jobs. It is time to redouble our efforts and look forward, working together to strengthen the most important pillar of our economy: decent and well-paid work. It means leaving aside the much-used and misused “class struggle.”

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