Mexico’s Informal Workers – Social Security and Formal Jobs

Published on: Jul 04 2013 by Thomas Lloyd

Reuters recently had an article about Mexico’s government and its attempts to formalize more of the many, many informal workers in the country:

Seeking to dismantle a black economy dragging on economic growth, Mexico wants to lure informal workers into the social security net – and the reach of the tax man. Six in 10 Mexican workers, or 30 million people, live in the informal economy, eroding Mexico’s already-low tax base and hindering plans to set up a universal social security system.

My thoughts:

  • Mexico will remain a low-cost choice with many excellent opportunities for expats. Many expats depend on informal workers for maintenance and cleaning. I don’t think these areas will change much. And if they do, then it will just mean that expats will hiring help by means of a more formal company with a more formal contract – which has its advantages anyway. Costs of these services may rise somewhat but will still remain well within reach of the average American.
  • This will create a more secure and stable society. No one will complain about this.
  • This will bring even more economic growth. As I’ve said before, now’s the time to invest in Mexico!

Read the entire Reuters article here.
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