Mariangel Salazar
Autonomous University of Queretaro. Email: mariangelsalazarsoto@gmail.com
Volume 13, Number 4, 2021 I Full-Text PDF
DOI: 10.21659/rupkatha.v13n4.64
Abstract
Since the end of March 2020 millions, as the COVID-19 pandemic emerged as a health emergency, working people had to stay at home, telework or had to face consequences of the crisis such as low wages or layoffs.[i] In Mexico unemployment became a major problem for the economy. Although the country took measures to contain the imp act of the pandemic on the labor market, these have not been sufficient; the development and implementation of activities that create incentive or promotions are indispensable components of the recovery or sustainability of industries in times of crisis[ii]. According to Article 25 of the Political Constitution of Mexico[iii], the State is responsible for guiding national development and ensure that it is comprehensive and sustainable; the State shall, according to the Constitutional provision, ensure the stability of public finances and the financial system to help generate favorable conditions for economic growth and employment[iv]. I shall argue however that the fiscal policies implemented to contribute as determining factors in the sector of growing unemployment due to the COVID-19 pandemic have not been adequate even though the optimal measures were being taken under a more socialist system of governance in place during the two years.
Keywords: Unemployment, COVID 19, national development, economic growth, Tax Incentives, Mexico
[i] Feix, N. (2020). México y la crisis de la COVID-19 en el mundo del trabajo: respuestas y desafíos. Organización Internacional del Trabajo, 2. https://www.ilo.org/wcmsp5/groups/public/—americas/—ro-lima/—ilo-mexico/documents/publication/wcms_757364.pdf.
[ii] Hernández, N., Clark, P., & Torres, L. (2021). El mercado laboral mexicano tras un año de pandemia. Instituto Mexicano para la Competitividad, A.C., 10-12. https://imco.org.mx/wp-content/uploads/2021/05/202518-IMCO-analiza-Mercado-laboral-tras-un-an%CC%83o-de-pandemia_Documento.pdf.
[iii] Constitución Política de los Estados Unidos Mexicanos, Diario Oficial de la Federación, México, 05 de Febrero de 1917.
[iv] Estrella, V. (2021). Tras pandemia, solo cinco estados amortiguan desocupación al cierre del 2020. El Economista. https://www.eleconomista.com.mx/estados/Tras-pandemia-solo-cinco-estados-amortiguan-desocupacion-al-cierre-del-2020-20210121-0150.html.