Mexico City.- Labor informality is a challenge that the government of the virtual President-elect, Claudia Sheinbaum Pardo, will have to face, since almost 55 percent of the economy is in this situation.
An analysis by Citibanamex warns that primary activities (farming), construction, retail trade and other services are the sectors with the highest percentages of informal employment and production.
“Policies seeking a significant reduction in informality should focus, in the first instance, on these sectors,” adds the report “Moderation in the conditions of the labor markets in Mexico and the US” published by the financial institution on July 8.
Meanwhile, the sectors with low labor informality and low productive informality are found in the activities of electricity, water and gas, corporate, mining, information in mass media, financial services, government activities, health services, educational, business support, wholesale trade, manufacturing, professional services and some real estate services.
The Ministry of Economy points out in the document “Mexican SMEs, the engine of our economy” from last June that people who carry out informal activities have been stigmatized because they do not comply with the procedures before public institutions.
But, he said, it is the State that must provide the alternatives and legal administrative frameworks that enhance people’s abilities to have more lasting businesses.
Octavio de la Torre, president of the National Confederation of Chambers of Commerce, Services and Tourism (Concanaco-Servytur), believes that one of the measures that could help reduce informality would be administrative simplification.
“The existing overregulation burden should be addressed and an analysis should be made of federal, state and municipal overregulation, as well as the tax codes of the municipalities that allow the establishment of the informal economy and the development of human capital and technical assistance to accompany businesses from informality to formality,” he stressed.
She warned that Sheinbaum’s program intends to reduce the regulatory burden and improve the digital one-stop shop schemes, with the aim of making them a place where procedures are consolidated and it is easier to complete them.
De la Torre said that action must be taken by the Legislative Branch and all three levels of government to reduce informality.
“It is not just a federal issue, there is a state and particularly municipal component.
“In the outline presented by Sheinbaum there are certain conditions in the digital part, development of human capital, which together could reduce informality,” she said.
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