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Weekly Roundups

Is Mexico Recovering From Unemployment?

By Andrea Villar | Thu, 09/03/2020 - 17:14

About 1.5 million Mexicans joined the labor market in July compared to June, while the unemployment rate fell from 5.5 percent to 5.4 percent, according to data released by INEGI, meaning that 49.8 million people had a job during July 2020. Out of the 12 million citizens who left the labor market in April and ceased to be part of the economically active population (EAP) due to the economic downturn brought by the pandemic, 7.2 million returned in July.

On Wednesday, the Head of Government of Mexico City Claudia Sheinbaum, presented the economic reactivation plan for the capital for 4Q40 and 1Q21, which includes an investment of more than MX$142 billion (US$6.5 billion), of which MX$40 billion (US$1.8 billion) will be destined to supports and microcredits, MX$75 billion (US$3.5 billion) will be for private investment projects and 27 billion (MX$1.2 billion) for public infrastructure and housing projects.

The strategy, made up of 10 key points, also seeks to recover the 220,000 jobs that were lost in the capital due to the COVID-19 pandemic. The program includes the following:

  1. Direct support to the population of Mexico City, microcredits from the government to capital micro-entrepreneurs and microcredits from the government during the pandemic.

  2. Infrastructure works for health, education and mobility. Modernization of L1 of the Metro, seeding of parks and rivers and works on hydraulic infrastructure and reconstruction and social housing.

  3. Private investment for inclusive housing and urban regeneration.

  4. Modernization of the Historic Center of Mexico City (Zócalo).

  5. The Vallejo-i Technological Development and Innovation Center will be advanced to deliver solutions for the city.

  6. The government of Mexico City will promote hotels, restaurants, museums, tourist transportation and theaters.

  7. Digitization and simplification of procedures for SMEs.

  8. Strategic projects with private investment, such as the connection with the Santa Lucia Airport and the Feria de Chapultepec renovation.

  9. Use of urban and construction waste.

  10. Through a support program for the recovery of public space, activities will be carried out to remove graffiti, take care of green areas and clean up parks, forests, ridges, subway stations, public squares, under bridges and schools, among others, generating employment.

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Photo by:   Gabo Romay, Unsplash
Andrea Villar Andrea Villar Journalist and Industry Analyst