Millennials Are Essential to Mexico’s Economy: BBVABy Sofía Hanna | Fri, 08/06/2021 - 17:11
Millennials proved themselves essential during the pandemic, being almost one in three active workers and played a fundamental role in Mexico’s economic reopening during the pandemic.
According to BBVA Research, Millennials with complete or incomplete studies at a professional level had a monthly income of MX$11,252 (US$561) during 2020. This is more than double the salary of those with a high school level education (MX$5,546 or US$277), and 63 percent more than someone with a technical career (MX$6,883 or US$343). Millennials with a master’s or doctorate earned an average of MX$16,102 (US$803) per month.
Members of Generation X with a high school education receive very similar incomes to similarly educated Millennials, despite the difference in the years of work experience between both groups can be up to 15 years. The Generation X population has higher incomes than the Millennial population with professional degrees (35 percent higher) or graduate studies (48 percent higher).
BBVA Research’s study observed that one of the most important expenses for Millennials is housing and highlighted the need for more flexible schemes that allow this population to access to housing. The Millennial population that decides to become independent and reside outside their parents’ home must evaluate the quality and cost of the new life. BBVA suggests offering insurance that could defer the mortgage payment from six to 12 months and granting grace periods during the transition from one job to another. “This insurance would be very economical for both parties, as it would not seek to cover the monthly payment, but to defer the credit for certain months under the same conditions and be complementary to unemployment insurance.”
BBVA also made analyzed Millennials’ work conditions, especially those regarding turnover. “Regarding the retention of talent to reduce turnover and attract talent, companies must offer conditions that new generations value and improve their quality of life, such as the possibility of teleworking, greater flexibility in working hours, more project-based jobs and goals instead of schedules.” Given the weight that Millennials have in the workforce, the group recommends for incentives in regions that provide low wages so that the talented population does not try to migrate to other areas or countries since this limits the recovery of certain areas.
BBVA Research suggests that if quality jobs cannot be obtained, “young people who have just graduated from their careers could be supported through programs or subsidies to migrate and seek better opportunities in the states with higher incomes and quality of life if they so wish. In the same way, women could be supported to find job opportunities in places where the gender pay gap is smaller.”