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Latino Daily News

Wednesday December 12, 2012

60 Percent of Mexicans Working in Informal Sector

60 Percent of Mexicans Working in Informal Sector

Photo: Informal economy (Carraol)

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A total of 29.3 million people in Mexico work in the informal economy, or 60.1 percent of the country’s overall workforce, the National Institute of Statistics and Geography, or Inegi, said.

The autonomous agency unveiled a new methodology for calculating the number of informal jobs that includes all people who are economically active but lack access to the social security system.

Inegi had earlier counted 14.2 million people as part of the informal sector, or roughly 29 percent of the country’s total workforce of 48.7 million.

The new system includes people in informal commerce, domestic workers and those who work off the books in what are supposed to be formal positions.

The survey, conducted in the third quarter, found that of the 29.3 million people informally employed, 2.1 million are engaged in paid domestic labor, 6.2 million work in the farm sector and 6.8 million others work for companies, government and institutions.

The remaining 14.2 million include street vendors and other independently employed people who had been counted under the previous methodology.

Nearly 18 million informal workers, or 61.3 percent, are men, the survey found.

By age, 42.8 percent are between 25 and 44, 27.3 percent are between 45 and 64, 23.5 percent are between 14 and 24 and 6.2 percent are 65 or older.

In terms of take-home pay, people formally employed earn an average of 38.4 pesos ($3) per hour worked, while informal workers earn an average of 24.8 pesos (not quite $2).