LABOR SCENARIO IN NUEVO LEÓN IN THE FACE OF THE HEALTH CRISIS

November - December 2020

Five months have elapsed since the declaration of the health contingency due to Covid-19. the health contingency due to Covid-19, the economic effects continue to be economic effects continue to be felt, with unemployment being one of the most serious of the most serious effects due to its social impact. The industrialists of have undertaken an arduous struggle to recover the path of economic growth. the path of economic growth, and with it, to rebound the generation of jobs the generation of jobs so necessary for the balance and welfare of society. and well-being of society.

After the Reactivation, the Recovery

According to Caintra's most recent analysis According to Caintra's most recent analyses, signs of recovery signs of recovery are beginning to be of economic recovery. During the first four months of the sanitary contingency and after the period of mandatory stoppage of non-essential activities, businessmen and businesswomen in Nuevo León set a primary objective in their agendas set a primary objective on their agendas: to reactivate themselves by complying with the new regulations and sanitary and sanitary conditions. At In this effort, timely guidance from reliable sources was essential. For this reason, Caintra acted as pioneer and main partner of the companies offering a broad program called Reactivación Económica program called Economic Reactivation The first phase consisted of specialized training, conferences and dialogues with experts, as well as bulletins with key information. key information; and in a second phase, deploying deploying 2 financial support programs called "Caintra Contigo" (focused on micro-enterprises) and Credisuministros in alliance with Nafin (with credit lines of up to 2.5 million pesos for each company). for each company)

In this way, Caintra exercised leadership to help the reactivation to occur in strict compliance with the recommendations and regulations of the governmental and sanitary authorities, protecting the health and safety of our customers. authorities, protecting the health and lives of the health and lives of employees and their families. their families. However, the road to reactivation is not completely over. At the time of going to press, the risk traffic light issued by the Ministry of Health issued by the Ministry of Health places Nuevo Nuevo León in orange, which entails limitations and mandatory specifications for the performance of non-essential economic and social activities. economic and social activities.

But it is during the months of August and August and September that the Reactivation gave way to a new objective for businessmen and economic recovery. In this sense, one of the current efforts of the companies is to make the necessary adjustments and evolve the necessary adjustments and to evolve operationally and administratively and administrative evolution, and in some cases, to revolutionize their business model in order to regain business model to regain the efficiencies and productivity and productivity necessary to bring them back to the back to the rates they had prior to the Covid-19 contingency. Covid-19 contingency. This Economic Recovery presents an even greater challenge than the previous one. But the industry has allies such as Caintra and conditions that make it the spearhead of this new economic dynamic.

First signs of economic recovery

According to Caintra's report on the labor the labor situation in Mexico, with official IMSS IMSS official figures, August was the first month of the first month of the sanitary contingency to present a positive variation in job employment generation at the national level, ending a negative streak of 5 months with job losses (Table 1).

In this regard, Mario Parga, head of the Economic Studies area of Caintra, said Caintra points out that "The recovery of employment in the manufacturing sector in Nuevo Leon during the months of August and September, which also already exceeds pre-pandemic levels, are a good sign the pandemic, are a good sign that the economic reactivation has economic reactivation has taken effect and that the industrial sector is responding quickly to the changes. It is likely that generation is likely to continue during October, however, by the end of the year there could be further job jobs could be lost again, but mainly due to the seasonal effect of year-end."

The report adds that Nuevo León led the nation in employment generation with 16,354 jobs, 171 Pt3T of the national total. of the national total.

For the month of September, this indicator again showed positive data, in which Nuevo Leon maintained its streak with the generation of 13,307 jobs vs. August. Nuevo Leon maintained its streak with the generation of 13,307 jobs vs. August.

Another encouraging sign is the role of the manufacturing sector, which is represented by Caintra. by Caintra, leading the way in September with 7,738 new jobs with 7,738 new jobs, representing 58.1% of the employment generated at the state level. statewide. (TABLE 2).

AUGUST WAS THE FIRST MONTH OF WITHIN THE HEALTH CONTINGENCY TO SHOW A POSITIVE VARIATION IN THE POSITIVE VARIATION IN THE GENERATION OF JOBS OF JOBS AT THE NATIONAL LEVEL.

August and September have become the first months in the first months to show tangible signs of economic recovery. tangible signs of economic recovery. The industrial manufacturing sector is at the forefront of these indicators. Good practices and rapid adaptation to new sanitary and rapid adaptation to the new sanitary conditions have been elements in driving this positive dynamic. this positive dynamic.

Caintra reiterates its call to the authorities

The role of the authorities has not ceased to be the role of the authorities has not ceased to be fundamental for the economic recovery. Since the beginning of the sanitary contingency the sanitary contingency, Caintra has raised the voice of the industrialists to demand from the 3 levels of government government greater coordination in their prevention strategies, as well as the allocation of resources that allow companies to overcome the current crisis. Since Since the contingency was declared, more than 1 million formal jobs have been lost nationwide. at the national level. The repercussions at the social and macroeconomic and macroeconomic repercussions are severe.

Caintra pointed out in recent reports: "For the government agencies, there are actions that do not require investment, but will, to support the SME sector to continue its recovery, for example: improvements in the response times of procedures, reducing bureaucracy to undertake low-risk businesses, making inspection processes transparent and publicizing them, and generating certainty for investors. certainty for investors."

The private sector, led by the manufacturing industry, is struggling and achieving the first signs of recovery from the current severe crisis. and achieving the first signs of recovery from the current severe crisis. Caintra will continue to accompany the industrialists in this this path, and urging the authorities to join in this process for the good of Mexico and all Mexicans. Mexico and all Mexicans.

RECOVERY IS BEGINNING TO SHOW, BUT IT IS STILL FRAGILE

Although employment generation is an important indicator, a broad analysis requires a review of the important indicator, a broad analysis requires a review of other other factors, which Caintra has closely monitored. closely. "The economic recovery can also be The economic recovery can also be observed through the manufacturing orders index, which showed a rebound manufacturing orders, which showed a rebound in V, both in Nuevo Leon and Mexico. in V, both in Nuevo Leon and Mexico. In addition, exports have also exports have also advanced with respect to the most critical months. the most critical months. Nonetheless, uncertainty remains uncertainty remains, and the possibility of a second wave of contagion with new restrictions on companies puts at risk the economic recovery economic recovery, especially in terms of jobs. jobs. So this recovery is still fragile," concludes Mario Parga, concludes Mario Parga.

by HÉCTOR VARELA WITH INFORMATION FROM ESTUDIOS ECONÓMICOS CAINTRA