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
American tourist killed by stray bullet in Mexico City: ABC News
According to ABC News, an American.
Tour Mexico’s Yucatan Peninsula and explore ancient Maya culture
The archaeological sites of the Maya.
OPINION: AMLO will fight the drug war in a different way
Phillip Smith is a writer, author.
Top 10 things you should know about NABCO Ghana
While NABCO is still a new.
Mérida City Council will take “vulnerable social groups” representatives to visit Logos Hope
MÉRIDA, Yuc.- The City Council of.
Four deaths in Yucatán due to Influenza: State Health Secretariat
After days of waiting to have.
Mexico opposes U.S. plan to make it take asylum seekers -document, source
MEXICO CITY, July 12 (Reuters) –.
Mexican scientists develop fetal monitoring device
Specialists from the Center for Industrial.
800,000 tourists are expected to visit Yucatan this summer
“During this summer holiday season it.
Yucatecan guayabera will be present at the Central American and Caribbean Games of Barranquilla 2018
The president of the National Chamber.