Argentina Faces a Key Labor Reform for Its Future
21, AprilThe beautiful South American country appears to be taking the necessary steps to once again become a beacon in a troubled world. Since President Javier Milei took office just ...
In what could be seen as a textbook example of misusing the public employment service, Mexico’s Ministry of Labor ...
In what could be seen as a textbook example of misusing the public employment service, Mexico’s Ministry of Labor and Social Welfare announced that it has begun coordinating efforts with the country’s 167 employment offices to focus on the following issues: the prohibition of so-called outsourcing, labor inspections to ensure compliance with general working conditions, the coordination of job vacancies with the business sector, and the management of the “Jóvenes Construyendo el Futuro” (Youth Building the Future) program.
The Minister of Labor emphasized that the policy of increasing the minimum wage will continue, with the goal of reaching 2.5 basic consumption baskets.
While the outdated, interventionist, misguided, and disconnected economic vision of both the AMLO and Sheinbaum administrations is nothing new, it remains striking to see the priorities assigned to an institution that should be focused on promoting employability and facilitating rapid access to the formal labor market.
The most modern, dynamic, formal, and inclusive labor markets in the world follow a completely different approach. Not only do they refrain from prohibiting triangular employment relationships—recognized since the 1960s as a source of best practices and positive impacts on the world of work—but they also foster coordination between public employment services and the properly regulated private employment services sector.
Since 1997, the International Labour Organization (ILO) has had a convention—Convention 181—on private employment agencies, developed through a tripartite process that included the participation of the Mexican government, employers, and workers. This convention promotes collaboration between public and private employment services, aiming to train workers in demand-driven skills—best understood by the private sector—and provide them with swift access to the formal labor market.
In the developed world, public employment services do not act as policing entities over a regulated sector that adds value to the labor market. Instead, they form strong partnerships with private employment services, working together to enhance employability, employment, and social inclusion. Strict control and exemplary penalties should be directed at employers who violate labor laws, rather than at employment services.
At times, it seems almost inconceivable that nearly a quarter of the 21st century has passed, amid a profound transformation of the world of work, a technological revolution, and major demographic shifts, yet a country as great and full of potential as Mexico remains entangled in outdated narratives that were resolved in the early years of the second half of the 20th century.
Time is a valuable asset that should be used to improve lives. It is imperative that Mexico returns to the right path and takes its rightful place in the 21st century as soon as possible.
Photo of david carballar in Unsplash