Late on Tuesday, Mexico’s National Statistics agency INEGI (National Institute of Statistics and Geography), had issued a statement saying that the already embattled Mexican economy had shed 12 million jobs since mid-March due to the fiscal fallouts of the pandemic outbreak adding that the number of people working in the informal sectors had soared significantly.
Aside from that, the Mexico’s National Statistics Agency, INEGI, had also added at its statement that the economy participation rate was 47.4 per cent of entire Mexican workforce in May, down from a 60.2 per cent registered in the same time a year earlier, while on a monthly basis the figure had little changed.
Social distancing measures were behind the mass-scale layoffs in Mexico
Meanwhile, adding that the social distancing measures inclined on a number of Mexican states in a bid to contain the pandemic outbreak had been the sole reason behind the havoc-scale layoffs, the INEGI said in a statement later on the day, “The downward variation of 12 million economically active people compared to March was maintained, due to the temporary work suspension caused by the social distancing measures.
” More importantly, the agency also reaffirmed that the furloughed workers were not receiving any kind of payoffs during the work suspension, while there had been no guarantee that the workers would get their jobs back following an ease of the lockdown measures, painting a bleaker portrait of the grief-sickened LATAM economy.
On top of that, latest data from INEGI came forth days after the International Monetary Fund had projected that the second-largest LATAM economy could witness an economic contraction of 10.5 per cent this year, which in effect would mark up the fiscally hurt nation’s largest year-on-year decline since the 1930s.
Nonetheless, addressing to a steep shortage of jobs in the manufacturing and services sectors given the extent of a havoc-scale demand crunch across the globe, the INEGI was quoted saying at its report that the number of Mexican citizens involved in the odd jobs rose by 4.1 per cent in May compared to a month earlier.