Amid all the noise about the future of its trade relationship with the U.S., Mexico is quietly creating jobs at a record pace and reducing the informality that for decades has held back its economy, Bloomberg News reports.
More than 517,000 Mexican workers gained access to social security in the first half of 2017, a 17 percent increase from a year ago and the most in at least two decades, according to the nation’s social security institute. While many had some kind of income before, paying into the system gives them basic benefits such as health insurance and retirement payments. Official data showed the percentage of workers in the informal economy has fallen to 57.2 percent, down from a peak of 60 percent during the 2009 global crisis.
“This is a very strong year for job creation,” said Rafael de la Fuente, chief Latin America economist at UBS AG. “The shining light in the whole consumption story is employment. There’s no question that you’ve made a dent in informality under this administration.”
A portion of the gains can be attributed to an overhaul of labor laws approved in 2012 under then-President Felipe Calderon, with the blessing of the Institutional Revolutionary Party of President Enrique Pena Nieto, who had just been elected. The changes allowed for more flexible contracts. With more disposable income, workers are boosting retail spending and supporting growth at a time when the economy faces challenges from lower oil production to uncertainty about foreign investment and the future of the North American Free Trade Agreement, or Nafta.
Mexico, the U.S. and Canada are set to start talks as soon as next month to renegotiate Nafta, which President Donald Trump says is responsible for millions of job losses in the U.S. and a $63 billion trade deficit with Mexico.
To read complete article click here.
more recommended stories
Cozumel returns to lead the cruise industry in Mexico and South America
The general director of the Port.
According to Mexican businessmen, the Maya Train project will only be profitable for Quintana Roo and Yucatán
In spite of the planning of.
2018 Merida’s International Festival of the Maya Culture has been cancelled
The State Government reported that it.
Organic products are becoming more popular in Mérida
Everyday, more and more companies offer.
Local transport companies will invest 250 million pesos in new Cancun-Tulum Metrobus
In order to cover the growing.
While Venezuelans suffer and die of hunger, Maduro eats at one of the most expensive restaurants in the world (VIDEO)
A viral video showing Venezuelan president Nicolás.
Tulum’s “La Calma” Ecoresort master plan rejected by Semarnat
On September 12th, the environmental organization.
Organ donation culture increases in Yucatan
September 17, 2018 (ACOM) .- The.
New air route Merida-Villahermosa
Viva Aerobus, Mexico’s ultra-low-cost airline, with.
Criminology expert warns about possible increase of organized crime activity in Yucatán
“Poverty levels in the state of.