Mexico could recover jobs lost during pandemic in Q1 2021, says president

MEXICO CITY (XINHUA) – Mexican President Andres Manuel Lopez Obrador said on Friday the country could recover the jobs lost due to the novel coronavirus in the first quarter of 2021 through the credits his administration granted to small businesses.

The president said at a press conference Mexico lost some one million jobs due to the pandemic since April, but employment has been gradually rising since August.

“It helped us a lot to have decided to support small companies with loans that commercial banks had never provided many of, nor under favourable conditions,” he added.

According to the president, his administration provided over two million loans to small companies, both in the formal and informal sectors, to help small businesses retain their staff.

The challenge going forward, he said, is to achieve a balance “between health and the economy” in the face of signs of a new outbreak of the virus in some areas of the country.

The unemployment rate in Mexico fell in September to 5.1 per cent among the Economically Active Population, down from 5.2 per cent in August, according to official figures.

Mexico, the second largest economy in Latin America after Brazil, began on June 1 to gradually reactivate some sectors of the economy that had been closed since the end of March to prevent the spread of the virus.

The Mexican economy could register a nine per cent decline in 2020 due to COVID-19, according to the International Monetary Fund.