Mexico | Job loss hasn't bottomed out yet: large companies with higher closing rates

Summary

The COVID-19 pandemic has resulted in a loss of more than 1 million formal jobs in just three months. Given the uncertainty about the economic recovery and the number of closed and inactive companies, a further deepening of job losses is expected.

Key points

• Key points:
• The loss of formal jobs has been for workers with lower incomes: 92.4% with incomes of up to 2 minimum wages
• 9.9 thousand formal employers were dropped out of the IMSS in April and May, 65.5% were micro and small companies
• The closing rates of medium and large companies are higher than in the 2008-09 crisis
• 600 thousand companies in the formal and informal sector paralyzed and without income, with high uncertainty of being able to return (ETOE)
• 11.8 thousand employers in the informal sector transitioned to unemployment (ETOE)

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