25% of workers would join the informal sector for a better salary

By definition, informality it is related to everything opposed to decent work; that is, occupations without social security, without respect for minimum rights, without stability, among other elements. Despite this, a quarter of workers in Mexico would be willing to leave their jobs to seek opportunities in the informal sector.

According to the OCC World Job Thermometer, the 25% of Mexicans would quit a subordinate job to seek an informal occupation, the reason is the need for better income.

During the pandemic, informality has been a refuge from unemployment. In October 1.2 million people joined the employed population, 60% of this growth was concentrated in self-employment and 27% in unpaid work, according to figures from the National Survey of Occupation and Employment (ENOE) .

The salaried and paid work it was the only occupation condition that decreased in the past month, despite the growth in the employed population. This indicator is 833,333 places below its pre-pandemic levels, despite the fact that the labor market has already recovered the jobs lost due to the health emergency. In contrast, self-employment and unpaid work encompass more people than before.

In this context of recovery in other working conditions and less salaried work, informality covers 300,657 more people than in March 2021, the period prior to the impact of the pandemic on the labor market, and covers a universe of 31.3 million people. In this way, the rate of labor informality is at a level of 55.6 percent.

37% of those surveyed by OCC Mundial affirm that interest in informality is related to the lack of opportunities in companies. People agree that organizations do not give young people spaces due to lack of experience and that adults do not hire them due to age. East vicious circle it has favored informal employment.

“Thus, people see the comfort offered by the informal employment, where you yourself are your boss setting the schedule, location and goals, therefore, these factors are transformed into better earnings for you “, indicates the Labor Thermometer.

On the other hand, 33% attribute as the main reason for migrating to informality the low wages that are perceived in formal jobs. One point that respondents agree on is that some companies take advantage of the unemployment context to offer lower incomes.

“They comment that it is not news that given the economic crisis, salaries are not so attractive, however, they consider that some companies take advantage of the need for employment to hire staff with a very low salary and with long hours of work ”, says the report.

Only 14% of Mexicans perceive the informal sector as an opportunity to obtain extra earnings and that is why they bet on businesses such as food, sales or fashion as a route to double their earnings with respect to what they receive in their formal jobs.

The issue of income is relevant to stay in a job, although as a result of the pandemic, Mexicans have begun to prioritize elements such as security or stability at work, salary remains one of the aspects most valued by workers, according to a LinkedIn report.



Reference-www.eleconomista.com.mx

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