Because at least 62 out of every 100 peopel employed in some job are in informal labor conditions, because the average monthly salary for a full day is 8,952 pesos (a difference of 5,351 with respect to what is obtained in Mexicali, 14 thousand 303.74 pesos), also as almost a third of those who work (33.3) exceed the 48 hours established by law, the metropolitan area of Oaxaca is one of the worst urban areas to work.
According to the urban competitiveness index of the Mexican Institute of competitiveness (IMCO), the metropolitan area of oaxaca is located in the penultimate place of the 18 cities with between 500 thousand and one million inhabitants in terms of the labor market, which analyzes mainly “the performance of cities in terms of quality and working conditions.”
In its annual analysis, where it also rates six subindices or aspects of 66 cities and/or metropolitan areas, the IMCO classifies these cities into three segments according to the size of the population. The metropolitan area of Oaxaca has between 500,000 and one million inhabitants, covering 27 municipalities. Among them Oaxaca de Juárez, which has more than 270 thousand inhabitants and thus is the largest in the area and state.
In its study, in the labor market subindex, the institute points out that in the metropolitan area of Oaxaca there is also a large gender wage gap, a low monthly salary when compared to the highest of the 66 cities analyzed, also as There are very few companies that have more than 50 employees. In this area, companies of this type do not reach even one percent (0.8), which places it in 61st place out of the 66 cities.
“Our Labor Market subindex evaluates the performance of cities in terms of quality and working conditions. The best-positioned cities stand out for their efforts to reduce the gender income gap,keep the proportion of workers with excessive hours low,and minimize labor informality. Simultaneously occurring, these cities offer competitive salaries, greater labor productivity and a critically important concentration of companies with more than 50 employees,” explains IMCO about this evaluation.
How can technology contribute to reducing informality in the labor market?
Title: Navigating Informality in the Labor Market: An Interview with Dr. Alicia Moreno
Time.news Editor (TNE): good day, everyone! Today, we have the pleasure of speaking with Dr. Alicia moreno, an esteemed expert in labor economics. Dr. Moreno,welcome to Time.news!
Dr. Alicia Moreno (AM): Thank you! I’m excited to be here and discuss an crucial issue affecting so many workers.
TNE: To kick things off, I came across some startling statistics recently. It was reported that at least 62 out of every 100 people employed are in informal labor conditions. What are the implications of such a high percentage?
AM: That’s a critically important concern. Informal labor often means a lack of job security, limited access to benefits, and vulnerability to wage theft.Workers in these conditions may struggle to make ends meet, and families often face additional challenges.
TNE: And it seems that the average monthly salary for a full-time worker is around 8,952 pesos, which is 5,351 pesos less than what is necessary to meet basic living standards. How does this salary gap impact families?
AM: It’s a real challenge for household stability. Families may have to make tough choices, such as forgoing healthcare or education for their children.This perpetuates cycles of poverty and can hinder overall economic growth for the community.
TNE: informal labor appears to be deeply entrenched. What do you think are the root causes behind this high level of informality?
AM: There are several factors at play. Economic instability, lack of education, and limited access to formal job opportunities push people into the informal sector. Additionally, businesses might prefer hiring informally to cut costs associated with taxes and benefits.
TNE: Given these issues, what measures can be taken to promote the transition from informal to formal employment?
AM: We need a multi-pronged approach. Policy reforms are essential; this includes simplifying the process to register businesses and creating incentives for companies to formalize their workforce. Education and vocational training can empower workers to seek formal positions.
TNE: It sounds like a collaborative effort is needed. How do you see the role of technology in addressing this issue?
AM: Technology can be a game-changer! It can help connect job seekers with formal employment opportunities, streamline the hiring process, and even facilitate training programs. Digital platforms can also offer a safety net for workers, allowing them to share experiences and seek guidance.
TNE: That’s very insightful! Moving beyond the economic side,what kind of social implications does this widespread informality have on communities?
AM: Informal work can erode trust within communities as workers feel insecure and unsupported.it can also result in social fragmentation,as families struggle with instability and uncertainty. Addressing these issues holistically can foster a healthier society.
TNE: Before we conclude, what message would you like to share with policymakers and community leaders regarding informal labor?
AM: I’d emphasize the importance of understanding and addressing the needs of informal workers. Engaging them in dialog and giving them a voice in shaping policies is crucial. Ultimately,investing in people leads to enduring growth and stability for everyone.
TNE: Thank you, Dr. Moreno, for your valuable insights on this pressing topic! It’s clear that addressing informal labor conditions is vital for economic stability and community well-being.
AM: Thank you for having me! it’s essential that we continue these conversations to inspire change.
TNE: And thank you to our audience for joining us today. Untill next time, stay informed with Time.news!