Informal Employment Reaches 30 Million MexicansBy Andrea Villar | Thu, 04/22/2021 - 13:57
The number of people working informally in Mexico rose above 30 million people in March 2021, a level not seen since the same period last year, when the economic crisis due to COVID-19 kicked off in the country. According to INEGI data, from February to March alone, 1.2 million people were added to this sector of the economy, bringing the total to 30.6 million people. The labor informality rate stood at 56.8 percent in March, from which men accounted for 57 percent while the female rate stood at 55 percent.
According to INEGI, labor informality includes those labor vulnerable due to the nature of the economic unit in which they participate, as well as those whose labor relation or dependence is not recognized by their employer. The OECD pointed out that Mexico needs a strategy to reduce informality. “A comprehensive strategy to combat informality is needed to ensure that the economic recovery generates formal jobs, which would contribute to inclusiveness,” the agency said in its report Economic Policy Reforms 2021.
With the approval of the outsourcing reform this week by the Senate, analysts warn that this could generate more informality in the country. According to an analysis by ManpowerGroup, with this new scheme, 70 percent of employers will turn to informal or semi-informal hiring or layoffs.
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