The Senate will evaluate a reform to exempt from payment of fees to the Mexican Institute of Social Security (IMSS) to companies that grant their first job opportunity to young people. The proposal states that the social security of the first job formal is covered with federal resources.
Among the member countries of the Organization for Economic Cooperation and Development (OECD), Mexico ranks 18th in youth employment, with an employment rate of 40.9%, which is just one basis point above the average among economies that make up the body.
The initiative promoted by Senator Mayuli Latifa Martínez Simón (PAN) seeks to raise the youth recruitment with difficulties to access a formal job, granting greater incentives to employers. The proposal was turned over to the Labor and Social Welfare Commission of the Upper House for analysis.
The project proposes that companies be exempt from the employer fees only during the first year of the employment relationship and for each young person in their first job, it does not establish a minimum floor or hiring limit to access the benefit.
“This measure stimulates employment of young people and it removes a tax burden from employers, since during the first year of the employment relationship with the young worker, they will not pay the employer fees to which they are required to report to the Mexican Institute of Social Security, lightening the company’s costs ”, exposes the legislator in the initiative.
However, the fact that companies may be exempt from paying IMSS fees for one year would not imply that young people are left unprotected in their first job. The new professionals would have social Security like any other worker, but during the exemption period these payments would be made by the Ministry of Finance and Public Credit (SHCP).
To regulate this stimulus, the senator proposes to incorporate the exception of the payment of quotas in article 15 of the Social Security Law and modify the 40F and 167 of the same legal order that, due to its current wording, prevent the payment of social security from being waived.
The group most affected in the pandemic
“Young people have been one of the age groups most affected by unemployment and, one year after the health emergency, still 11.6% of those who were employed have not managed to get a new job,” says Mayuli Martínez.
The youth employability It is one of the challenges of the labor market in Mexico. According to the National Survey of Occupation and Employment, the 29% of the unemployed population It is located in the range of 15 to 24 years and 48% is between 25 and 44 years.
“It is urgent to establish public policies aimed at promoting youth employment. It is necessary to create mechanisms that make it easier for young people to find employment, it is essential to provide support in the transition from school to the labor market. One way to do this is to establish stimuli for patterns that they hire young people who are looking for their first job ”, emphasizes the senator in her proposal.
Among the youth, the outlook for university students it is more complex due to the composition of the labor market. Within the OECD, Mexico is in the last places in employment for people with higher education, with a rate of 76.3%, a level far from the average of the body’s member countries, which is 84.6 percent.