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Weekly Roundups

Afore Withdrawals Soar 101 Percent Due to Unemployment

By MBN Staff | Thu, 07/16/2020 - 12:22

The effects of the COVID-19 pandemic have not yet manifested clearly. However, one of the most evident consequences to date is the loss of employment. People fired from their job withdrew MX$1.85 billion (US$83.21 million) from Afores inJune, official figures from the National Commission of the Retirement Savings System (CONSAR) show.

The sum is 101.6 percent higher than what was withdrawn in June 2019 and 18.66 percent higher than the withdrawals of the previous month. In the first half of 2020, worker withdrawals totaled US$8.57 billion (US$384 million). Last June, due to the crisis unleashed by the novel coronavirus, 83,311 formal jobs were cut.

By law, people who lose their job must wait 46 days to be able to make a withdrawal from their Afore and once they make it, weeks of contributions are discounted. At the end of June, Afores managed savings of about MX$4.3 billion (US$179 million), according to data from CONSAR.

Despite this, President Andrés Manuel López Obrador is confident that job losses have already bottomed out, while analysts anticipate that a double-digit GDP contraction is inevitable. The president insists that by the end of 2020, his government will create 2 million jobs.

More news below:

  • Erik Villalpando, Managing Director of wizlynx group, believes the switch to home office will create opportunities in cybersecurity. “With many companies now holding virtual meetings through Zoom, Microsoft Teams and other platforms, they want solutions to ensure the security of their infrastructure. Employees working from home need to use their own modems, which grants them less protection than they would get using the company’s network,” he said in an interview with Mexico Business News.

  • As part of the cut in government spending promoted by the Presidency and the Ministry of Finance (SHCP), the Ministry of Labor and Social Security (STPS), implemented austerity measures ranging from computing equipment waivers to most officials halving water consumption. Likewise, employees have been "recommended" not to charge their cell phone batteries at the office, according to worker testimonies and internal documents consulted by Animal Político.

  • Weathering and overcoming the COVID-19 pandemic requires wage equality between men and women, UN Women and the Women 20 network said in a statement to the G20. Among the first recommended policies is to "safeguard women's jobs and generate dignified and ecologically sustainable jobs, especially in public and social infrastructure."

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