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  • Research report 129. Jobs that do not require Mexican families: President of precarious employment

    Published the Tuesday 15 in May of 2018 8:02 PM CAM No comment

     

     

    Introduction

    Job creation is one of the most flags flying in the current presidential term, albeit with starvation wages, with no job benefits, without access to health institutions and / or long working hours, They are particularly precarious jobs, shamelessly that President Enrique Peña Nieto notes are jobs that require Mexican families:

    "Over five years, the Government of the Republic we have worked to create the conditions that allow entrepreneurs to create jobs requiring Mexican families " […] "Strengthening employment began in November 2012 with the Labor Reform, which laid the foundations for a more dynamic labor market, flexible and inclusive. "[1]

    It's been more 5 years since the labor reform approved, job insecurity continues its march implacably, While unemployment levels have fallen in part because of methodological changes that will have to point- income levels continue to show a general impoverishment of much of the working population, Similarly the tendency to work longer hours increases rapidly.

    In this research report we will resume monitoring the behavior of employment and unemployment in Mexico: The trend of income and working hours in the last five years, unemployment,[2] and amendments to the Federal Labor Law which tries to hide a precarious and underpaid labor market long hours that do not need Mexican families but if entrepreneurs.

    1. Income and Work Sessions five years of the Labor Reform

    In the frame 1 It is shown the population by income levels 2012 to 2017, five years of labor reform of the population receiving 0 to 3 minimum wage has increased by more than 3 million 779 thousand people, an increase of 66.2% to the 68.3% to total occupied population. The trend is contrary if the population earning more than three minimum wages is observed, in 2012 they were 11, 332, 356 people, for 2017 He was reduced to 9, 125, 132 people, ie it went from 23.2% to the 17.3% relative to the total employed / as. Mexican workers have not only seen their purchasing power in a 13.42% during the presidency of Enrique Peña Nieto, (View Report 127 cam) Now the trend is to see also lower your nominal wage.

    While nominal wages decrease, working hours continue to increase. Resuming the number of the employed population and separating it into two segments according to the length of the working day, of 2012 to 2017 the population working less than 35 hours but decreases proportionally the 25% to the 23.3%, increases in absolute terms more than 107 thousand people.

    On the other hand, the working population 35 hours or more, increased in 3 million 728 thousand people, He grew from 72.6% to the 74.1%, If we look in detail, workers who work in 35 to 48 hours a week are the group most increases 2012 to 2017 In almost 3 millions of people, This speaks of a generalization in the extension of working hours which is understandable if only to get the Recommended Food Basket (CAR) They are already required 24 hours with 31 minutes, i.e., increasingly you have to work longer to acquire -contradictoriamente- less food to put on the table home (View Report 127 cam).

    1. Differences in the measurement of unemployment and unemployment

    Unemployment is measured by the National Institute of statistics and geography (INEGI) through the National Survey of Occupation and Employment (ENOE), this tells us: "To be an open vacated not enough then the present situation (being without work), but it also requires having a behavior (take action of search). This precision is key because often the term "unemployed persons" with "open unemployed" confused, when in fact the latter has an additional condition that conceptually makes the difference: an individual without work but not seeking (or look for it it has withdrawn) It is not part of the open unemployment because it is not behaving as a provider of employment services".[3]

    He continues by warning that does not measure unemployment, but unemployment: “Hence the open unemployment is not, or pretend to be, the magnitude that expresses how many people need to work in a place and time or measure how big the deficit of employment opportunities: what actually open unemployment indicates the magnitude of the population behaves as job seeker (This is, how many individuals are betting their integration into a labor market) to a deficit given opportunities. "[4]

    To measure the unemployment rate (not the unemployment) the following method is used by the INEGI: measures the number of unemployed people (PD) by each 100 economically active persons, so that the unemployment rate =(PD/PEA)*100, where PEA is the Economically Active Population, to comply with two conditions: 1) The people of 15 years and over, and 2) It divides into occupied population (which are currently employed) and unemployed (He is unemployed and looking one during the last month).

    At the Center for Multidisciplinary Analysis (CAM) UNAM have followed closely the recommendations of the International Labor Organization (ILO) in measuring unemployment, because we consider best approaches to reality compared to other measurements provided by the Government aimed at hiding the real level of unemployment in the country. The ILO states regarding the measurement of unemployment as follows:

    "... In situations where the conventional means of seeking employment are inadequate, where the labour market is quite disorganized or is limited, where labour absorption is, considered when, inadequate, or that the labour force is composed mainly by people with the self-employment, the standard definition of unemployment given in subparagraph 1) above can be applied by deleting the job search criteria."(ILO, 2005)

    Following the recommendation of the ILO a new methodology is built:

    To measure the unemployment rate does not contemplate the INEGI Population Available, which it is one that wants to work but has no job and not looking because they believe find or because he got tired of looking, same is counted within the population not economically active (PNEA). The latter classification also includes the population unavailable (that people who do not want to enter the labor market).

    Because the INEGI does not take into account the available population there is a huge bias in measuring unemployment rate, since the difference between the unemployed population and the population is available at the time seeking employment. The unemployed population is looking for work in the last month and have not yet achieved, while the available population is one that wants to work, He not employed and did not seek it in the last month because they believe find, i.e., It has a chronic unemployment.

    Turning now to the Population Available, the following proposed unemployment rate:

    Unemployment rate = (Unemployed population + Available population) / (PEA + Available population)

    With the above methodology we have for the third quarter of 2017 unemployment rate 12.4%; as shown in Table 3 the unemployment -at like unemployment- They have been declining, However, This decrease is clearly at the expense of generating precarious jobs as we find in Table 1 and 2.

     

    1. The amendment to Article 22 of the Federal labour law

    It should be mentioned that in the 2015 it was decided to change the age of the population to work on the grounds of "protecting children from work in precarious conditions", This led to the amendment of Article 22 Federal Labor Law where the age of the population was changed to work, passing of 14 to 15 year old. Also, Article was changed 22. Bis resulting in the following:

    "It is prohibited to work under fifteen; work over this age and under eighteen years who have not completed their compulsory basic education may not be used, except in cases approved by the relevant labor authorities that it considers ensure compatibility between studies and work. "[5]

    With the change in the minimum working age INEGI proceeded to make changes in the presentation of data ENOE only taking into account population 15 years and over, pointing out:

    "International recommendations on labor force surveys issued by the International Labor Organization (ILO), They stipulate that countries should seek to disseminate the results of these surveys for the population of working age, preferably as it established in national legislation. In compliance with this recommendation and given the recent amendment to the Constitution of the United Mexican States, He is raising the minimum legal working age of 14 to the 15 years, INEGI presents the results of the National Survey of Occupation and Employment (ENOE), from the fourth quarter of 2014, for the universe of the population 15 years and older. "[6]

    Taking these changes into account, If on one hand reducing unemployment is due to the creation of precarious jobs, also it explained by the increase in working age. With this modification could confuse a decrease in unemployment rates and unemployment with a real decrease chronic problem that millions of people face daily in Mexico, adding to the situation expelled to other countries in search of work.

    Given the above, the unemployment rate for the third quarter of 2017 hideth 75% Current unemployment, against a government that seeks to assert its programs to promote employment as a success, when in reality, the decrease in the measurements is in part the change in the working age population, what at first seems a little change, it is actually a modification aimed at reducing the current numbers in the current economic context of our country.

    1. Map of unemployment and unemployment in Mexico, 2017

    Exemplifying the above, on the following maps the differences between -obtained Unemployment rates shown with the methodology of INEGI- and unemployment rates -obtained with the methodology that follows the CAM- the third quarter 2017, He is noting how well concealed in every state unemployment, plus, revealing what the states with the highest unemployment levels are.

    During the fourth quarter of 2017, following the methodology and using data INEGI, must be national unemployment rate is 3.3%, It is Tabasco (6.9%), the CDMX (4.6%) and Queretaro (4.6%) the states with the highest percentage of unemployed population, while Guerrero (1.6%), Oaxaca (1.7%) and Yucatan (1.7%) are the states with the lowest unemployment rate.

    For the same period, using data INEGI, but following the methodology used in the CAM to measure unemployment, It must be nationwide unemployment rate of 12.4%, It is Veracruz (18.7%), Tabasco (18%) and Morelos (15.3%) the states with the highest unemployment rate; while Yucatán (6.9%), Guerrero (7.2%) and Hidalgo (8.3%) are the states with lowest unemployment rate in the country.

    Clearly the difference between the two methods, on the one hand, must be the unemployment rate conceals a 75% Unemployment nationwide, also that the states with the highest unemployment rates, They are not really those with the highest unemployment rates, It is the case of Veracruz and Tabasco, which are among the states with the highest unemployment, to which, they are conceals a 79.0% and a 62.6% unemployed population respectively.

     

     

     

    Information sources:

    "Over five years, we have worked to create the conditions that enable the creation of jobs requiring families: EPN”. Press Office of the Presidency. 21 November of 2017. Available in: https://www.gob.mx/presidencia/es/prensa/a-lo-largo-de-cinco-anos-hemos-trabajado-para-generar-las-condiciones-que-permitan-la-creacion-de-empleos-que-requieren-las-familias-epn?idiom=es consulted the 13 in January of 2018.

    Multidisciplinary Analysis Center, CAM:

    Research report 118. "Unemployment and less pay for more hours of work: Results to two years of labor reform ". Available in: http://cam.economia.unam.mx/reporte-de-investigacion-118-desempleo-y-menos-paga-por-mas-horas-de-trabajo-resultados-dos-anos-de-la-reforma-laboral/

    Research report 127. "Mexico 2018: Other social and political defeat to the working classes; wage increases stillborn ". Available in: http://cam.economia.unam.mx/1018-2/

    National Institute of statistics and geography (2005): "National Survey of Occupation and Employment 2005: ENOE, A new poll for Mexico", National Institute of statistics and geography

    International Labour Organization (2005): "Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, adopted by the thirteenth International Conference of statisticians of labour", ILO.

     

    [1] Enrique Peña Nieto. "Over five years, we have worked to create the conditions that enable the creation of jobs requiring families: EPN”. 21 November of 2017. Available in: https://www.gob.mx/presidencia/es/prensa/a-lo-largo-de-cinco-anos-hemos-trabajado-para-generar-las-condiciones-que-permitan-la-creacion-de-empleos-que-requieren-las-familias-epn?idiom=es consulted the 13 in January of 2018.

    [2] the differences between unemployment and unemployment will point.

    [3] Instituto Nacional de Estadística, Geography and Informatics. National occupation and employment survey. Mexico. 2005. p.p. 9.

    [4] Ibid.

    [5] DECREE amending and repealing certain provisions of the Federal Labor Law, on child labor. 12 of June of 2015. Available in: http://www.diputados.gob.mx/LeyesBiblio/ref/lft/LFT_ref27_12jun15.pdf consulted the 13 in January of 2018.

    [6] Note on the publication of the results for the population 15 years and more. 12 February's 2015. Available in: http://www.beta.inegi.org.mx/contenidos/proyectos/enchogares/regulares/enoe/doc/nota_result_proy15mas.pdf consulted the 14 in January of 2018.

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