We show you the percentage of informal employment in Latin America during 2021 and some factors that have contributed to its growth.
The Covid-19 pandemic and social decline caused an endless number of business around the world were in need of closing their doors for different reasons, among them, the fear of the rise in infections, the low influx of people, lack of economic activity, “frozen” suppliers, among endless other actions to consider, thus affecting the economy of millions of people.
To take into account the impact that the pandemic has left in its wake, it would be worth considering in detail the study of Statistical where he shows how the Covid-19 influenced the world economy during 2020, where only China managed to increase his GDP by 1.8 percent, while the rest of the countries decreased their numbers considerably, as was the case of state joined with minus 3.7 percent, Germany with minus 5.5 percent, France with minus 9.1 percent, Mexico with minus 9.2 percent and Argentina with a minus 12.9 percent, among others.
Speaking of economies we can get an idea of the economic impact worldwide in recent years, but how is this reflected in the business world?
According to the studies on the Demography of Businesses 2020 and 2021 (EDN) carried out by the National Institute of Statistics and Geography (Inegi), it was shown that there were approximately 1.6 million businesses that had to close their doors. permanently, directly affected in the economic income of millions during the last years; in counterpart there were more than 619 thousand new ones.
These types of figures have caused millions of people to see entrepreneurship as a good alternative to achieve a constant economic income, or simply as a complement to it; however, not everyone has the necessary papers to run their business legally, so the informal employment It ends up being a fairly common practice in America Latin.
Fortunately and unfortunately for some, one of the reasons the informal employment in Latin America exists is because it is not necessary to pay taxes before the proper institutions linked to the government (in the case of Mexico the SAT), so at the end of the day this would mean a higher income; likewise, this type of “job” does not necessarily provide workers with decent treatment, with social security and other possible benefits (such as a savings account and grocery vouchers, to name a few), another being “attractive” idea to “save” and carry out this practice.
Despite this, there is a large part of the population that finds in the Informal commerce a way to pay for their essential expenses, such as food, a home and other things that a decent life implies, but it should be considered how well or badly this does the population? how to do something about it?
Different companies are integrating their efforts to improve people’s quality of life and supporting their small (or not so small) enterprises, such as Semillero Nutrisa or even Belcorp, brands that have some alternatives to boost the economy. of Mexican women and families through different initiatives.
Informal trade is quite common to see in Latin America, where more and more companies come together to reduce it as much as possible and help the economy of families internationally.