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2010 Difficult Year for Employment in Mexico City
 The News
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January 25, 2010
Mexico City - The Secretary of Mexico City's Labor Secretariat, Benito Mirón Lince, acknowledged that 2010 will be a difficult year in terms of unemployment throughout the city but it is thought it will not be as bad as 2009 since the unemployment rate is not likely to exceed the 8.6 percent of 2009.
During a press conference, the secretary said that the secretariat will have a budget of 8.6 million pesos and 5.5 million will be destined for unemployment insurance.
In order to encourage the creation of jobs this year, the secretariat, the Congress and Mexico City's 16 boroughs (Álvaro Obregón, Azcapotzalco, Benito Juárez, Coyoacán, Cuajimalpa, Cuauhtémoc, Gustavo A. Madero, Iztacalco, Iztapalapa, Magdalena Contreras, Miguel Hidalgo, Milpa Alta, Venustiano Carranza, Tláhuac, Tlalpan and Xochilmilco) will sign an Employment Agreement in Feb.
The agreement will consist of different obligations that the government will carry out. The Congress will need to approve bills that would facilitate the opening of new businesses, particularly in the social sector.
The Labor Secretariat will organize training programs and workshops for new business owners and grant financial aid.
The 16 boroughs will have to provide information detailing where and how are they spending their budget. The boroughs will also have to encourage the sales of local businesses because foreign businesses have affected the sales of many national companies and small businesses.
Secretary Mirón said that they would also promote agreements with the private sector to reintegrate unemployed people to the productive sector. The committee also expects to have at least two employees participating in the Social Economic Council that was recently established by Mexico City's Mayor Marcelo Ebrard.
According to the secretary, the reform of the Federal Labor Law might increase unemployment; therefore, the committee will express their opinion to the Congress regarding the reform on Feb. 2.
The agreement also aims to grant unemployment insurance for all of those who need it throughout the country. Secretary Mirón said that the Labor Secretariat also needs to work to create new job sources in order to boost the economy.
Last year, the unemployment rate was 8.6 percent and the informal jobs rate was 26.6 percent, meaning that 1.4 million people were unemployed, which exceeds the number of unemployed people in 2008. Throughout 2009, in Mexico City alone, 68,744 people lost their jobs and only 21,706 jobs were created. These figures represent a deficit of 47,038 jobs.
Secretary Mirón said that that 2010 will be a difficult year not only because the Gross Domestic Product (GDP) in developed countries has grown more than that of Mexico but also because the economic policies in Mexico are inefficient.
The Federal Secretary of the Labor Secretariat, Javier Lozano Alarcón recently stated that there are signs of economic recovery because the GDP grew 2.93 percent in the third trimester of 2009, which basically ended the economic recession.
Regarding the Labor Reform, he said that the modifications will increase competitiveness and productivity, create more jobs and encourage a policy of transparency in labor unions while fulfilling the requirements of article 123. He also said that they expect to create between 300,000 and 400,000 jobs in 2010.
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