Why are labor market failures a concern?
– Add more workers, especially due to the increasing number of women who have joined the paid economy.– Has a…
– Add more workers, especially due to the increasing number of women who have joined the paid economy.
– Has a very low unemployment rate compared to other countries in the region.
The presence of talent that is growing rapidly, which shows that the education policy has fulfilled its objective of raising the standard of school education.
Despite these forces, something has happened in this market that workers’ incomes have fallen. In 2019, an average worker earned less per hour than in 1990. The condition affects both sexes equally, but it is much more marked for workers who have a high school or bachelor’s degree.
This implies that the labor market has not been able to take advantage of the talent generated by the educational system, thus failing to fulfill one of its main economic objectives: providing workers with jobs commensurate with the schooling they have achieved. Offering and allowing them to develop new skills over the course of their career..
In the same sense, informality has not changed over the past 30 years. In other words, policies implemented across the five administrations have been unable to increase the number of workers with access to social security benefits such as health services, allowances, nurseries, maternity leave or pensions in the event of old age or work accidents. Work done. For this reason this market has not fulfilled its social purpose either.
Unfortunately, this panorama has not changed in the first three years of President López Obrador’s administration. ICE 2022 shows that, in 2021, one in two workers was in the informal sector, six in 10 workers did not have access to health institutions, and one in three workers did not have access to paid holidays or bonuses such as There were no benefits.
These are national averages, but if you look at them on a map, you can see that the country is divided. It is far more difficult to find a quality job in the southern states than in the north.