The latest report released by the Bank of Mexico ( Banxico ), the organization calculates that 1,400,000 Mexican will lose their jobs in the formal sector this year, as well as a similar number of workers in the informal sector. This will contribute to an 8.8% contraction in the Mexican economy by the end of 2020.
In the same report, Banxico described the current economic crisis as an “unprecedented level of stress” for the labor market.
The creation of jobs is, without a doubt, one of the criteria used to measure the government’s capacity to provide wellness conditions to its citizens. However, the quality of the job is also important: benefits and a decent salary that is enough to cover the needs of the worker and their family, as well as savings .
On the other hand, some jobs don’t pay enough to fulfill their basic needs, don’t offer benefits , and force workers to look for a second job to make ends meet, taking a mental and physical toll on the employee.
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Besides a job, he government must guarantee or attract investment as a way to generate jobs; however, if the investment is often dismissed or demonized, potential investors refuse to create new jobs that will promote the development of the country.
Recovering from the loss of millions of jobs will take months, perhaps years. This won’t take place thanks to the President’s promise to create 2 million jobs since the government has fewer resources and can’t rely on foreign investors amid a worldwide crisis .
Could the loss of jobs be prevented? Probably not because isolation and physical distancing measures implemented amid the COVID-19 pandemic were meant to control the spread of the virus ; however, an agreement between the government and the private sector could have softened the crisis.
Now, the government must set its sight on the creation of jobs . The government must become an ally that generates trust among investors and that enforces the law. Recent measures implemented by the federal government are an obstacle for investment or could be considered sabotage. Therefore, it is necessary to take a new path to create more job opportunities .
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