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Tuesday, August 18, 2015

Mexico Youth: Six in Ten Young People Work In Informal Employment - Government Statistics

Thousands of Young People in Mexico City Go to the Zócalo [Main Square]
Searching for Employment Opportunities.
Photo: Octavio Gómez
Proceso: Juan Carlos Cruz Vargas

Mexico City - Given the limited opportunities for [self] development, education and employment, young Mexicans remain a vulnerable population group, according to the National Institute for Statistics and Geography (INEGI).

In presenting the statistics in connection with International Youth Day (August 12), INEGI explained that the primary vulnerability is access to the labor market and the precarious conditions under which it operates. Going into more detail, the INEGI explained that the unemployment rate among 29 million young Mexicans in the first quarter of 2015 was 7.4%, almost twice the national level of 4.2% estimated for the general population.

According to INEGI, one of the problems facing the youth population when seeking work is the lack of work experience; statistics, in fact, show that 18.2% of unemployed youths lack work experience.

For its part, the Business Coordinating Council (CCE) maintains that in addition to "high levels of unemployment among young people", there are a large number of employers who cannot find people with the requisite skills—an estimated 40% of job vacancies remain unfilled.

But that's not the whole story: six in ten young people work at informal jobs. Moreover, the number shoots up when they haven't finished elementary school: nearly nine out of 10 young people who fall into this category work informally. In contrast, only four of ten youths with high school and college or university education levels work in the informal sector.

The vulnerability of the population working informally shows itself in many ways, including the pay received for their work. Here's the salary breakdown for young people working in the informal economy:
  • 18.2 % receive up to one minimum wage*;  
  • 33.5 % receive more than one and up to two minimum wages; and 
  • 16.4 % do not receive pay for their work [i.e., working in family business, or working only for tips].
In sum, these three categories represent 68.1% of young people working informally.
MV Note: In Mexico, the minimum wage is widely used to calculate salaries, taxes and various kinds of fines. For 2015, the minimum wage is 70 pesos per day, or about US$4.27 per day (current exchange rate).
According to business leaders, Mexico has one of the highest rates in terms of young people who neither work nor study [NiNis]; more than one-fifth of Mexicans between 15 and 29 years of age are in this circumstance.

Moreover, of the young people who are definitely among the employed population, only 15% earn a salary greater than 6,000 pesos [US$366] a month, and more than 12.5 million do not achieve salaries in excess of three minimum wages. The vast majority of young people are employed in the informal sector, with precarious working conditions characterized by neither stability nor a promising future.

In a statement, the CCE pointed out that many young people are joining the criminal ranks as a false exit from the marginalization and lack of opportunities, but they also find death. According to INEGI, 34,509 young people died in 2013; which represents 5.6% of all deaths.

High male mortality is a feature of this population segment. Nationally, 316 men die for every 100 women. The three leading causes of death in men are:
  • 28.7 % assaults;
  • 17.2 % highway accidents; and
  •   7.2 % intentionally self-inflicted wounds.
These causes of death are all classified as violent; taken together they represent 53.1% of total deaths in this age group. The CCE emphasizes:
"Today the demographic dividend, which should be a factor for further growth, is being wasted. A comprehensive strategy is lacking by which all sectors of society might close ranks to support our young people and reverse these hard data within a reasonable time."
The CCE added:
"It should be truly concerning us to note that once again, as a country, we continue coming up very short in the face of the enormous challenges that our young people face, with a present that is very difficult for millions and a future outlook of great uncertainty."