The impact of COVID-19 on employment

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The impact of COVID-19 on employment

The job market is undergoing a revolution, now accelerated by the Covid-19 pandemic. Technology was already threatening to transform the labor market, but today those fears and changes have become a reality.

The outlook, in terms of employment, is not encouraging, since the health crisis has also triggered an economic problem, which increased the unemployment figures during 2020.

Between April and May of last year alone, 12,180,000 formal and informal jobs were lost, according to data from the National Institute of Statistics and Geography (Inegi) and the Mexican Social Security Institute (IMSS).

Despite everything, Mexicans seem to be among the workers who paint a positive picture for the future. A total of 47% of Mexican employees They expressed optimism about the labor market in 2021.

WEAK RECOVERY

In 2021, employment began to show a somewhat timid recovery, with the creation of 47,000 jobs, in its monthly comparison of January. 

Companies today face the challenge of adapting to new needs. 66% of employers say there will be an improvement in flexible work options, and 65% will increase work-from-home options.

The digitalization that industries are experiencing is part of the catalysts for generating a change in traditional remuneration and serving their consumers who carry out most of their activities from home.

The main challenge for Latin American countries is the development and investment capacity to digitize their operations.

According to data from the Indeed survey, the Education (50%), Human Resources (40%), and Information and Communications Technology (32%) sectors are the industries with the best perception for hiring in 2021, as most agree that hiring plans will be the same as before the pandemic.

They are followed by Architecture, Engineering and Construction (20%), Arts and Culture (29%), Finance (20%), Manufacturing and Public Services (22%), Sales, Media and Marketing (23%).

Healthcare will see a slight decline, with 42% agreeing that they plan to hire at 75% of pre-Covid-19 levels. Meanwhile, Retail, Food Service and Leisure (29%), as well as Travel and Transport (33%), will be the sectors hiring the least, with most agreeing that they will only hire for key roles.

In the new normal, companies will emphasize short-term plans rather than long-term ones, due to the changing and adaptive conditions that will persist during the pandemic, with contingency plans in place to deal with the unexpected.

Having a secure and stable job will be one of the top priorities for 2021 among workers aged 16 to 54, says Indeed.

To prevent the decline of formal employment, it's crucial to understand that job recovery depends not only on creating new jobs, but also on creating quality jobs. Furthermore, in the short term, recovery will be linked to the progress of vaccination efforts to overcome the pandemic, while in the medium and long term, investment will be essential for sustained improvement.

Mexico is caught between hope and anticipation of job recovery. The health crisis offers almost no certainty of recovery, but it does guarantee irreversible changes.

En GDI We adapt to changes and seek the best for our employees, providing the necessary tools to move forward despite the contingency. 

We are looking for the best option to continue working remotely, implementing more digital methods and certain tools to stay connected and thus be able to serve our clients efficiently and safely.

Faced with challenges, we strive to move forward and support our employees.

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