Mexico | Pandemic and lack of investment damage the labor market and increase poverty

Summary

The economic crisis caused by the pandemic and the economic policy response (or rather, its absence) caused significant damage to the Mexican labor market.

Key points

• Key points:
• The labor participation rate - that is, the sum of those who have a job and those who are looking for one - was 60.2% in February 2020, before the start of the health emergency, and fell to 47% in the second quarter of that year.
• The unemployment rate has also failed to recover: before the crisis it was at 3.6%; while, in June 2020, during the most critical part, it rose to 5.4%.
• As can be seen, the crisis has left significant damage in the labor market: more unemployment, high informality, and worse working conditions.

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