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Weekly Roundups

Unemployment in Mexico to Decline by Late-2022: OECD

By Andrea Villar | Fri, 07/09/2021 - 09:28

Mexico's unemployment rate will return to pre-pandemic levels by the end of 2022 due to the strong impact of the COVID-19 outbreak and the actions taken by the government to deal with the crisis, an OECD report estimated. “Projections suggest that the unemployment rate in Mexico in 4Q2022 will be 0.5 points higher than before the start of the pandemic,” the Organization for Economic Co-operation and Development (OECD) reported in its 'Employment Outlook 2021' analysis.

Unemployment rose to 4.1 percent in February 2020, just before the pandemic hit and quickly climbed to 5.5 percent during the peak of the crisis in June last year. “As many European and North American countries cautiously reopen, unemployment in the OECD is projected to fall by an additional percentage point by the end of 2022. However, Latin American countries are still grappling with high COVID-19 rates and many are expected to take several years to recover pre-pandemic employment levels,” the analysis states.

More news below:

  • With an end to the pandemic in sight, companies are asking their employees to go back to the office, which is leading many of them to quit. Called 'The Great Resignation' by many economists, this wave of workers leaving or preparing to change jobs is driven by a number of factors that have been building up since the pandemic hit. The complete analysis here. 

 

  • After the economic recovery seen in 1Q2021, Mexico’s economy is beginning to stagnate. After a steep 18.7 percent drop in GDP during 2Q2020, Mexico’s economy is showing a gradual recovery and grew by 0.8 percent during the first three months of 2021, according to recent data from INEGI. However, economic activity is beginning to slow down, according to INEGI's most recent estimate, which registered a 0.2 percent drop in April. Read the complete article here

 

  • Mexico was Co-Chain in the UN-led gender equality forum held last week in Paris, France, which aimed to eliminate gender-based disparities. The Generation Equality Forum featured multiple discussion panels and provided a platform for over 700 speakers and delegates from 150 countries to discuss critical topics, including the benefits gender equality brings not just to women but to societies as a whole. The forum was divided into two stages: the first in Mexico City and the second in Paris. Go deeper here.

 

  • Mexico’s National Institute of Statistics and Geography (INEGI) reports a continued regression of female participation in the country’s workforce. The institute’s latest employment survey indicated that this year 24 million women are “not economically active or available,” an increase of 11 percent from 2020 due to homemaking, studies, physical disability, retired or pensioned. Click here for more insights.

 

  • Initial jobless claims in the US rose slightly to 373,000 in the week ended July 3, a sign of the labor market's uneven recovery, reported Reuters. Data released on Thursday by the Labor Department showed an increase of 2,000 claims over the previous week, which was adjusted up to 371,000, The 373,000 claims were above the 350,000 expected by economists surveyed by Bloomberg.
Andrea Villar Andrea Villar Journalist and Industry Analyst