Employment in Mexico and the United States, has it already regained pre-pandemic levels?

May 19, 2022 | 05:00.

Plans to revive Mexico and the United States Overall, they helped these economies restore the vitality of their labor markets, as they showed at the end of the first quarter of 2022 Employment levels Similar before the COVID-19 pandemic.

In Mexican territory, the 3.5% rate was the lowest since March 2020 at 3.3%, a month before it was announced Imprisonment and complete cessation of non-essential activitiesAccording to data from the National Institute of Statistics and Geography (INEGI).

You can read: More than 600,000 people asked for money from them for unemployment

For the American nation, the A labor index of 3.6% of the active population It means the lowest level since February 2020 at 3.5%, according to statistics from the Bureau of Labor Statistics.

However, the The largest economy in the world The first months of the epidemic suffered intensely, with unemployment rates recorded in 2020 reaching 14.7% in April, 13.2% in May, 11.0% in June and 10.2% in July.

In fact, the rate of 14.7% in April was the highest Since at least 1948, when recordings for this variable began. While in Mexico, the highest rate during the pandemic was observed in June 2020by 5.4%.

Strategies

P . was foundKey Economic Revitalization Strategies Of the North American countries it was mainly dependent on restoring lost jobs.

Joe Biden’s administration offered Assistance payments In the form of revocable loans to businesses, grants to state and local governments, and social benefits to families.

Read also: Ben Bernanke forecasts stagflation in 2023 and 2024

The scenario was more optimistic with Vaccine progresswhich encouraged social mobility, implementation of federal aid programs, with stimulus controls and loans.

Whereas Mexico’s strategy consists of protection, through wellness programs, Small loans and job guarantees, for 70% of families in the country, starting from the bottom up.

In addition to the vaccination process, the pilot program for domestic workers, the restoration of the minimum wage, and Outsourcing repair which promoted the category of permanent workers.

side effects

The importance of the recovery of employment in Mexico lies in the fact that it leads to private consumptionthe most important component of GDP on the demand side, accounting for about 65% of the total Mexican economy.

In addition to the above, the dynamism of the US labor sector has a direct impact on the consumption of Mexican households through Send remittancesyes

During March 2022, income from remittances was $4,681 million (95% coming from the US), representing an annual rate of 12.6%, spinning. One year with two-digit differences.

In the end, the biggest beneficiary is Mexico, because when consumption recovers, through employment and transfers, Economic activity the country is revitalized.

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