Unemployment Withdrawals Increase for Third Consecutive Month

Unemployment withdrawals from pension funds (Afores) increased for a third consecutive month to reach their highest number in 2021, CONSAR reports. However, partial unemployment withdrawals decreased as well for a third consecutive month.

Unemployment withdrawals increased dramatically for a third consecutive month according to public statistics from CONSAR, registering MX$1.95 billion (US$97 million) withdrawals during August. This number represents the highest monthly total for the year 2021 and marks a recent trend. Unemployment withdrawals began increasing in June, when they amounted to MX$1.89 billion (US$93.6 million), only to increase in July to MX$1.903 billion (US$94.5 million), reports CONSAR.

On the other hand, Partial Unemployment Withdrawals fell for a third consecutive month. Partial Unemployment Withdrawals are a “procedure through which the worker can make a partial withdraw from his individual account due to unemployment. A worker must record 46 days of unemployment to be allowed to receive this withdrawal,” according to CONSAR. These procedures are very popular in Mexico and are the most sought-out investment methods after banks. During June, they reached their highest point in the last three months with an MX$1.61 billion (US$79.7 million), followed by a decrease in July to MX$1.41 billion (US$69.8 million) and registering the lowest point in August with a total of MX$1.35 billion (US$67 million).

The commissions for AFOREs continue to average 0.80 percent according to CONSAR, while the highest one is Invercap’s with 0.87 percent followed by Inbursa with 0.86 percent and Banco Azteca with 0.85 percent. CONSAR also reported that in August, Banco Azteca continues to be the most dominant player with 15.63 million accounts, followed by Coppel with 13.63 million accounts and Citibanamex with 9.67 million accounts. The system for retirement registers about 69.2 million users in Mexico.