The Organization for Economic Cooperation and Development (OECD) reported that in 2020, in the countries that make up the organization, around 22 million jobs were lost and 114 million worldwide, and despite a partial recovery, they still there are more than 8 million more unemployed than before the covid-19 crisis, and more than 14 million more people who are not actively looking for work.
According to the document Employment Outlook 2021, the employment rate (the proportion of people of working age employed) in the countries of the OECD it will remain below pre-pandemic levels by the end of 2022.
In addition, hours worked in occupations with low salaries were reduced by more than 28 percent in the countries of the OECD, 18 percentage points more than the drop observed among high-wage occupations.
To this is added that the number of youths who do not work, study or receive training (NEETs) increased by almost 3 million, reversing the trend of the last decade. At the end of 2020, the average rate for NEETs aged 15-29, of 12 percent, remained a full percentage point above that of the previous year.
Mexico, the only country without a job retention scheme
In this context, OECD highlighted that almost all countries implemented job retention schemes during the covid-19, Mexico was the only one that did not and experienced one of the largest drops in employment numbers in the entire area of the OECD.
On Mexico, in mid-2020, the employment rate was 12 percentage points lower than the 2019 average (61.6 percent); In contrast, during the same period, the average employment rate of the OECD it deteriorated by only 5 percentage points.
The international organization highlighted that this particularly marked drop in the rate of job in the first months of the crisis covid-19 had a strong impact on household income, since between the last quarter of 2019 and the second quarter of 2020, in the absence of a comprehensive safety net, household gross disposable income decreased by almost 11 percent in Mexico, one of the largest falls observed in the area of the OECD.
As to unemployment, since the start of the pandemic in February 2020, the seasonally adjusted rate in Mexico it was 3.6 percent; However, it quickly jumped to 5.5 percent at the peak of the crisis, in June 2020, and according to the latest available data, the unemployment rate has not yet recovered and remains at 4.2 percent in May 2021.
The OECD noted that their projections suggest that the unemployment rate of Mexico will increase and will be 0.5 percentage points higher than its pre-pandemic level in the last quarter of 2022.
He explained that unlike most European countries, where the hours lost have been explained by the reduction in working time of workers who remained employed, in Mexico the adjustment was channeled mainly through unemployment, which accounted for more than half hours not worked throughout 2020.
The agency noted that this effect was particularly marked among the youths, since in the second quarter of 2020, unemployment accounted for up to 85 percent of the total fall in hours worked in the 15-24 age group in Mexico; In contrast, during the same period, less than half of the decrease in hours worked in the population over 25 years was attributed to unemployment.
He explained that this is probably a consequence of the fact that young workers have less stable contracts and in the sectors most affected by the covid-19 crisis.
Faced with this situation, the OECD He proposed that investment in Mexico be invested in public employment services and active labor market policies, as it is essential in the recovery to rebuild inclusive labor markets.
He elaborated that these investments are essential to help large numbers of job seekers move from declining to growing sectors, to help companies retain and hire staff, and to provide intensive individual support to particularly vulnerable people. .