The National Governors Conference (Conago) approved unanimously to support the proposal of the Secretary of Labor and Social Welfare, Alfonso Navarrete Prida, to relaunch the formal employment program in all states.
During the 50th Ordinary Session of the Conago, the leaders of the states agreed to support this program that was first presented by President Enrique Peña Nieto on July 22, 2013.
Therefore, in order to reduce informality, the states will work towards formalization of unregistered employees to social security, mainly in medium- and large-sized formal enterprises.
In turn, Navarrete Prida said the relaunch of the Program for Formalizing Employment aims to reduce informal employment by one percentage point per year.
He explained that as a result from the first part of this program, 1,891,160 people were incorporated into formal employment in the last three years.
Having benefits and social security is an essential element of social justice.”
— Alfonso Navarrete Prida, Secretary of Labor and Social Welfare
In addition, the Mexican government has successfully decreased the rate of informal employment between 2013-2014, reaching 57.6 percent in the second quarter of 2014, its lowest value since 2007 (57.5 percent).
Navarrete Prida stressed the impact on the income of workers joining formal employment, who depend on social security, benefits, bonuses, sharing utilities and holidays.