Mexico City Launches Programs to Boost Employment

Mexico’s unemployment remains a key public issue, as many have been excluded from the labor market due to the pandemic, inequality, a lack of opportunities or an intergenerational poverty cycle. Governments on the federal and state level strive to create viable programs that may alleviate the problem. To that effect, the Ministry of Labor and Employment Promotion of Mexico City announced the launch of the Employ Yourself and Prepare Yourself programs, created to promote the creation of jobs in the capital.

In Mexico City, the unemployment rate stands at 7.4 percent for young people, the highest rate of the country, according to data from the National Statistical and Geographic Information System (SNIEG). In addition, the informal sector is growing dramatically. This creates a problem, because informal work does not provide workers any social security, not does it follow proper regulation to guarantee labor rights.

The Employ Yourself program aims to promote self-employment by granting economic support to potential entrepreneurs at any level. Grants can only be used for the acquisition of goods for the projects, such as furniture, machinery, equipment and tools. The goal is to give people that have initiatives the tools so that they can create jobs for themselves and others. This social assistance can rise to MX$25,000 (US$1215). Projects that favor gender equality, innovation and the inclusion of vulnerable people will be prioritized.

Prepare Yourself, which is similar to the Youth Building the Future program, promotes employment through training. It provides young people with certifications that demonstrate their skills, enabling them to apply for a job position with a comparative advantage. Additionally, financial support of up to MXN$3000 (US$145) will be paid to various training centers.

Public policies such as the programs mentioned are key to solve social issues such as unemployment and informal labor abuses, which have historically been detrimental to Mexico’s economy, as well as its capacity to offer welfare programs and protect labor rights.