Every year more than a million people join informal work: AMECH – El Sol de México

Every year, one million 100 thousand people join informal work and join the ranks of workers who do not have benefits or social security, which now total 32.5 million, that is, 55.5 of the employed population. The reality is that only 4 out of 10 employed workers pay taxes and social security.

“We have to change course or we start creating more formal jobs or this is going to be disastrous,” said Héctor Márquez Pitol, president of the Mexican Association of Human Capital Companies (AMECH).

You can read: Abate labor informality, the challenge of Marath Bolaños López at the head of the STPS: AMECH

“The advance of informality is going to surpass us. There are states in the southeast where 80 percent of their working-age population is in the informal sector, especially in Chiapas and Oaxaca. On the other hand, to the north, the states are fortunately at 33 percent. But we have to create opportunities for the entire south of the country, ”she said in an interview.

“There are the challenges if we do not act directly with the proposals that we are going to make, the only thing that will happen is that informality will grow at the rate that it has done in the last 10 years.”

In other words, every year another million 100 thousand people join the informal sector. It is not fair for anyone, not for those people, nor for the country and everyone else, he told El Sol de México.

“Imagine a table for 10 people in a restaurant and the bill arrives. Then 6 get up, pay nothing and the 4 who do pay say, I pay for mine, not for others,” Márquez Pitol exemplified.

“Only 4 out of 10 people who work in the formal sector pay taxes and social security. So, this way we are not going to arrive and continue complaining about all this lack of resources, hospital beds, medicines, etc. What we have to to do is to change the course: either we begin to do more in the formality or this is going to be disastrous,” he warned.

He stressed: “What generates employment is investment. What we analyze is that there is investment. This year the investment is at 22 percent of the Gross Domestic Product (GDP) and it is expected to reach 24 percent”.

“But that ultimately generates around 700,000 new jobs per year, which are the ones that have been created in the last 10 years with social security. And one million 750 thousand new places are needed every year”.

In order for the 1,100,000 people who go into the informal sector to have the necessary opportunities in the formal sector, we need more investment. We would be in our projection in AMECH of up to 33 percent, which would be invested in relation to GDP, he said in the course of the interview.

This would create much more job opportunities for everyone. In the end it is what we have to take care of. According to the Constitution, we all have to have the same opportunities and be treated equally; but since there is not the necessary investment, there are not opportunities for everyone, he emphasized.

The government also needs to make the country very attractive for investors to come. The attraction is nearshoring, we are very close to the US; but what is the attraction that Mexico offers, not just its geography, he questioned.

In addition, one thing that is very important: The generation of certainty in that investment. This is that there is no concern and uncertainty about that investment. When companies invest, they recover their investment in 10 years.

And if they do not have that certainty that they are going to operate, grow, work for at least 10 years, how are they going to establish themselves if the rules can change.

According to a study by AMECH, which advanced El Sol de México, “we also talk about having flexibility in hiring, especially temporary staff that many companies require and more when you start, because you don’t know how much talent you’re going to have.” ”.

You have to have flexibility in hiring and, of course, insure all those temporary people, eventual ones that you hire formally, with social security.

Social security has to be universal for the time you give a person a job.

And we also talked about the need to have more programs that ensure that people have the necessary talent, trained and with skills and we generate experience, so that they are hired.

He recalled that with the Covid-19 pandemic, more than a million people who had formal employment lost their jobs and that is not counting those in the informal sector.

Companies need to find talent

Now that little by little normality has been restored, they seek to try to recover all the economic time lost.

Many organizations and including the informal sector seek to hire more staff to grow and this makes the world of work much more complicated at the moment. You have to get all the talent you need and it’s not easy.

Let us remember that 55 percent of the people who work in the country do so informally. Many who were formal and with the pandemic went informal.

Now for companies it is very rare that does not suffer for having the necessary talent. Right now the situation is critical. It is not so easy to have the talent; Salaries have increased, not only the reports of how much the minimum wage or the country’s average wage, which is 16,000 pesos, has increased.

All salaries increased because it was necessary due to inflation. This situation leads us to a paradox: employers say: “…I can’t find the necessary talent…”

However, people say: “…I can’t find a job…” and more young people comment: “…There are no opportunities…”

When it is generalized like this and you analyze in depth the reasons: on the side of the businessperson or employer, what happens is that they do find the talent; but when you already talk to the person, that talent wants to earn more or does not have the necessary capacity, experience and skills.

On the worker’s side, the job is often not well paid or the person who needs it does not accept it or they are not going to be given flexibility; the distance to work is considerable.

There are multiple factors on both sides that make them not fit. There are jobs and workers, but they don’t fit. It is a very difficult time, she stressed.

Given all this problem and within the framework of the AMECH that turns 21, we are going to present a study that in its first part will show all the statistics related to labor informality.

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In the second part, it will be the presentation of an investigation that was carried out during the first semester of this year where companies were asked why they hire informally and workers why they go to informality and how it could be resolved accordingly. with them.

In a third part, come the concrete proposals made by the AMECH to resolve or at least move towards formal employment, said Márquez Pitol.

2023-07-30 19:26:18
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