OECD: Mexico has the second lowest unemployment rate

Mexico reported the second lowest unemployment rate among the countries that make up the Organization for Economic Cooperation and Development (OECD), which brings together the largest economies in the world. The country was only behind South Korea, according to a report released by the organization yesterday.

The information compiled by the OECD reflects the unemployed population in relation to the total workforce in each country and, according to the method used by the organization, for those who are employed, it does not differentiate by type of employment, whether formal or informal.

The unemployment rate in Mexico stood at 2.7 percent of the workforce, a level similar to that of the Czech Republic and Japan, and slightly higher than the 2.5 percent in South Korea, the OECD said in its information, which contains data updated to July for each member country of the organization.

The highest unemployment rate, and the only one in double digits, was reported in Spain, with 11.5 percent of the employed population unemployed, according to the report.

The unemployment rate in Mexico in July is similar to that of April and May and lower than that reported for 2022 and 2023, when it was 3.3 and 2.8 percent, respectively.

It was also lower than the 2.8 percent in June 2024.

The average unemployment rate for all OECD countries was 5 percent, almost double that reported for Mexico, the report added.

The countries with the highest unemployment rates, after Spain, were Greece, Colombia and Turkey, with 9.9, 9.8 and 8 percent, respectively.

However, the figures for the United States and Canada, countries that make up the North American trade zone, were 4.3 and 6.4 percent respectively, also above those reported for Mexico, according to the document.

The OECD unemployment rate remained virtually stable for both women and men, at 5.2 percent for the former and 4.9 percent for the latter, and youth unemployment remained high, at or above 20 percent, in 10 OECD countries.

According to the National Employment and Occupation Survey, conducted in Mexico by the National Institute of Statistics and Geography (INEGI), in July 2024 the unemployed population was 1.8 million people and the unemployment rate was 2.9 percent of the economically active population.

Compared to July 2023, the unemployed population decreased by 102 thousand people and the unemployment rate was lower by 0.2 percentage points.

For its part, the Mexican Social Security Institute (IMSS) reported earlier this month that as of August 31, there were 22,389,835 registered jobs in the country, of which 86.6 percent are permanent and 13.4 percent temporary.

According to the IMSS, 365,449 jobs have been created so far this year.

Informality, the challenge

Alejandro Avilés, president of the College of Labor Lawyers of Mexico City, explained that occupying the second position for low unemployment rate does not mean that Mexicans have a well-paid job with social security and access to training.

The numbers presented for Mexico speak of people who are busy in some activity, but who do not necessarily have a decent job.he mentioned.

According to statistics from Inegi, more than 55 percent of the country’s employed population is in the informal economy.

Raymundo Tenorio, professor emeritus at the Monterrey Institute of Technology and Higher Education, said that in order to offer decent jobs, a legal environment is required that allows the Ministries of Economy and Labor and Social Security to authorize contracts based on hours worked, so that social security contributions are also paid by hour and not just by day, as is the case until now. He also proposes implementing strategies to incorporate micro, small and medium-sized businesses into the formal sector.