Social Policy and Job Creation in Mexico. Gustavo Merino Deputy Minister of Social and Human Development MEXICO Policy Forum: Creating More and Better Jobs OCDE-World Bank Rabat, Morocco. May 7, 2008.
Social Policy and Job Creation in Mexico
Deputy Minister of Social and Human Development
Policy Forum: Creating More and Better Jobs
Rabat, Morocco. May 7, 2008
The Economically Active Population will reach 50 million people this year, and will continue to rise over the coming decades.
The country needs to generate approximately 1 million jobs annually.
However, in the last few years, the creation of jobs in the formal sector (with job-linked social security) has fallen short of the 1 million benchmark.
Percentage of the Population (by age)
Source: CONAPO (National Population Council)
Source: Ministry of Finance and Public Credit
Source: CONEVAL estimates, based on the Mexican Family Life Survey 1992-2006
Spreading the benefits of growth requires an approach that simultaneously Uses targeted social assistance programs to alleviate poverty and increase productivity while facilitating access to the labor market and economic opportunities
Mexico just launched a social policy strategy that joins specific social and economic policies to increase incomes for the poor and promote job creation and employment
Social Safety Net
Economic Development and Well-Being
Access to Basic Social Rights
Development of Basic Capacities
Tools that raise individuals’ and families’ productivity and promote their free and full participation in society.
Nutrition: Increase access to food, as well as conditions that improve nutrition, specifically amongst children and women of child-bearing age.
Education: Implement reforms to guarantee universal access to quality basic education.
Health: Provide universal access to healthcare.
Housing and Basic Social Infrastructure: Broaden reach of existing programs, guaranteeing services for the least advantaged families.
Oportunidades, Food support programs (Programa Alimentario, Leche, Diconsa)
Housing programs for the poor (Fonhapo, Conavi)
Tools that help individuals throughout the life cycle to overcome contingencies and situations of vulnerability.
Health insurance program “Seguro Popular” to the uninsured population
Aid to families and localities affected by natural disasters.
Social and financial assistance to persons in situations of vulnerability, such as:
the temporarily unemployed (Temporary Employment Program)
migrant agricultural workers (Programa Jornaleros Agrícolas)
senior citizens (Programa 70 y +)
Bridges are necessary to ensure that social development translates into larger incomes and better well-being of the population
It requires coordination and actions from both social and economic policies.
From Social Policy, actions that strengthen capabilities, raise productivity and facilitate access to employment opportunities
From Economic Policy, conditions conducive to economic and employment growth
Facilitate entry into the labor market
Access to childcare through the Childcare Center Program
Information to link job seekers and employers (ex. job banks)
Build human capital
High school and university
Formal certifications for diverse job skills
Support for productive projects and self-employment (training, micro-credit etc)
Install adequate infrastructure for economic activity (e.g. roads wide enough for trucks, electricity adequate for powering tools and machinery, rural roads, telecommunications)
Improve urban planning
Increase flexibility and mobility in labor market and reduce labor costs.
Develop and strengthen savings mechanisms and ensure that poor families can access them.
Administrative and sectoral deregulation
Effective anti-monopoly policies
Create direct and indirect employment through large-scale infrastructure projects.
Promote regional development:
Encourage companies to establish branches in excluded areas.
Take advantage of existing competitive advantages and develop new ones.
Ensure rule of law and public safety.
Examples of Successful Policies
Affordable & Accessible ChildcareBridge
Some results (since january 2007)