Amidst all the noise on the future of its comercial relationship with the United States, Mexico has been creating jobs at a record pace, while reducing the informality that its economy has endured for decades, reported Bloomberg.

According to the Mexican Institute of Social Security (IMSS), over 517 thousand Mexican workers have accessed social security during the first semester of 2017, around 17% more than a year ago, and the highest rate of the past two decades.

Even though many workers already had a source of income, the formal system provides basic benefits, such as health insurance and pensions.

The percentage of informal workers went from 60% – during the world crisis of 2009- to 57.2%.

Due to their higher income, workers are driving consumption and supporting growth in times when the economy faces challenges such as a smaller oil production and the future of the North American Free Trade Agreement (NAFTA).

Mexico, the United States and Canada are willing to start negotiating NAFTA the next month. President Trump blames the agreement for the loss of millions of jobs in the US and a commercial deficit of USD 63 billion with Mexico.

Reforms, particularly labor reforms, have led to the formalization of employment, said Ernesto Mauleon Uribe, administration and finances director for Manpower Mexico. “The labor reform is enabling new types of labor contracts between companies and employees”.

The Mexican government stated that the labor reform, as well as changes made to increase competitiveness and open the oil industry to foreign investments, shall benefit workers, increase productivity and reduce inefficiencies in the second largest Latin American economy.

Source: AM Queretaro