Services drags chronic deficit in formal employment

Although the post-pandemic recovery of formal employment in the country was achieved in the month of October, with the monthly generation of 172,668 jobs, the service sector (companies, individuals and households) still reports a deficit of 441,400 jobs that has not been recovered. , according to data from the Mexican Social Security Institute (IMSS) in its monthly report for the tenth month of the year.

Specialists point to two fundamental factors in the slow recovery of the services sector, on the one hand, it is the economic activity that had the greatest impact with the confinement measures dictated by the government to counteract the effects of the pandemic, and on the other hand, in In April, the reform on subcontracting was approved, which has modified the way in which employers register their workers.

In this regard, Héctor Márquez Pitol, president of the Mexican Association of Human Capital Companies (AMECH) commented that “the services sector has important changes, and it is possible to notice how the Professional and Technical Services subsector had a historical growth in 2016 (more than 105,000 jobs) that has been reversed in 2020 and 2021 with a drop of more than 250,000 jobs “.

According to the IMSS Business Classifier, in the service sector there are personnel placement agencies or job exchanges, which act as intermediaries under the terms of the Federal Labor Law.

On the other hand, the IMSS report highlights that there are 20 million 767,587 jobs; of these, 86.9% are permanent and 13.1% are temporary. “With this figure, the number of jobs affiliated with the IMSS has exceeded the level observed before the start of the pandemic,” he explained.

It should be remembered that in 2020 the most important loss of jobs occurred between the months of March and July of that year and the fall was 1,117,610 jobs.

In this regard, David Kaplan, a specialist in Labor Markets at the IDB, commented that the recovery in employment has occurred more quickly than in the crises of 1995-1996, as well as the crisis of 2009-2010; however, there is still a backlog of jobs “for women it is 322,952 jobs and in the case of men 500,533 jobs.”

Kaplan added that for the labor market to recover, it is essential that it increase more than typical.

Eventuals continue to decline

On the other hand, temporary jobs have been decreasing, in July a loss of 228,891 temporary jobs was reported. For August, only 2,904 opportunities of this type were created, in September another 47,076, and in October 60,532, that is, 28,277 fewer jobs than October 2021.

In this regard, the general director of the IMSS, Zoé Robledo, pointed out that quality has improved, “we have more and more permanent and non-temporary jobs, the figure is also historical for Social Security, we believe that this behavior is largely due to to the reform of the Federal Labor Law on subcontracting ”.

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Reference-www.eleconomista.com.mx

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