The need to create new jobs and to reactivate Mexico City’s economy has prompted the local government to announce that it will be supporting the construction industry, a sector that has been previously criticized by local authorities.
will support large public projects and grant stimulus to private companies, as well as grant social aid to create self-construction projects. All this to create around 1 million jobs; however, authorities failed to mention that many of these jobs are temporary or would be informal.
Therefore, the local government will invest MXN 76,000 million in the construction industry . Over MXN 50,000 million will be negotiated with the private sector since it could create over 500,000 jobs. On the other hand, public projects include public transport, schools, and programs to improve public spaces and homes.
By supporting self-construction projects , authorities estimate that each of the 92,000 credits would employ one or two people each. In total, this project could translate into 170,000 jobs.
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This project seems unlikely for the current government because when Mayor Claudia Sheinbaum took office, she canceled several projects and created a team to improve the construction sector, arguing that the environmental impact , the objections made by neighbors , and corruption would limit the permits issued by the government.
Now, the local government is hoping that this same industry will boost and strengthen the reactivation of the economy given that it controls large amounts of money and creates thousands of direct and indirect jobs .
It’s true that during the previous administration, led by Miguel Ángel Mancera , the construction industry thrived and focussed in luxury apartments instead of building social housing ; however, instead of halting an industry that is crucial for the economy, it’s important to eradicate corruption inside the sector.
It’s positive that Mexico City authorities reconsidered their decision while still monitoring and regulating construction .
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