Government Reports Jobless Rate above 3 Percent for January-September, but Underemployment Remains High

SourceMex Economic News & Analysis on Mexico, November 4, 1998 | Go to article overview

Government Reports Jobless Rate above 3 Percent for January-September, but Underemployment Remains High


The latest government statistics on unemployment report the jobless rate for September at only 3.3% of the economically active population (EAP). As of 1997, the EAP comprised 38.8 million Mexicans of working age. The September statistics, published by the government's Instituto Nacional de Estadisticas, Geografia e Informatica (INEGI), are slightly higher than the August unemployment rate of 3% of the EAP. INEGI said the September data brought the average unemployment rate for the first nine months of the year to 3.9%.

The government includes in the official employment rate EAP members who are working even a few hours a week. However, INEGI's index of part-time employment, often overshadowed by the unemployment data, offers a more accurate picture of the country's employment situation. The index (Tasa de Condiciones Criticas de Ocupacion, TCCO) measures the percentage of the EAP that is either employed less than 35 hours per week and earning less than one minimum wage or is working 48 hours per week and earning between one and two minimum wages. According to the recent INEGI report, the TCCO for January-September was 13.2% of the EAP.

But even INEGI's attempts to measure underemployment via the TCCO provide an incomplete picture of Mexico's employment situation. Some economists suggest that the TCCO rate would be much higher if INEGI modified the criteria to include workers employed more than 35 but less than 40 hours per week. Similarly, the TCCO would rise if the government counted workers who were employed 40 or more hours per week but who make the equivalent of one minimum wage.

Report says many Mexicans working in informal economy A report published in late September by Grupo Financiero Banamex-Accival (Banacci) said only 19.4 million Mexicans, or half the EAP, receive a regular salary. Another 1.94 million, roughly 5% of the EAP, are employers. The remainder of the EAP either make a living from the informal economy, work for a relative for no pay, or have no way to earn a living.

Some legislators and businesses have proposed that the government begin taxing street vendors to raise revenue. The issue has been brought to the table as part of the debate over the proposed 1999 budget, which faces some reductions because of a sharp decline in oil-export revenues and the impact of the global financial crisis.

But the Secretaria de Hacienda y Credito Publico (SHCP)

has rejected a tax on the informal economy. In a recent forum, deputy finance secretary for revenues Tomas Ruiz said the plan could cost the government about 0.22% of Mexico's annual GDP, which is more than would be obtained from imposing the new taxes.

Meanwhile, the Banacci report said the number of jobs in Mexico has risen in recent years because of growth in GDP in 1995-1997. The report said there were more jobs in Mexico in 1997 than in 1994, but the number of jobs created was insufficient to match the explosive growth in the EAP.

The government expects GDP growth to slow considerably in 1998 and 1999 because of the global financial crisis. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Government Reports Jobless Rate above 3 Percent for January-September, but Underemployment Remains High
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.