Crisis 2008

THE CRISIS AS A FLU

I.THE UNEMPLOYMENT IN MEXICO

The financial crisis of 2008 was directly by the collapse of the housing in the United States in 2006, which caused in October 2007 the subprime mortgage crisis. The impact of the mortgage crisis began to manifest itself from the beginning of 2008, infecting U.S. financial system first, and then to international, have resulted in a crisis of liquidity, and causing, indirectly a global food crisis.

"The 2008 financial crisis can be seen officially in August 2007. It was when the central bank had to intervene to provide liquidity," according to George Soros. According to the Instituto Mexicano del Seguro Social (IMSS) between October and December last year lost about 413,000 jobs - permanent and temporary, which is the worst decline in formal employment in the past three administrations.

The effects of the crisis originated in the U.S. financial system have been expressed in the lasts months in the national reality, show in the loss of tens of thousands of jobs. The manufacturing sector of the country, highly dependent on United State economic cycles said that the last year, a 11.3 percent decrease in production, which means cuts of 8.22 percent of its staff. The unemployment situation in the country is compounded by measures that harm workers and their families and contribute to the destruction of social fabric, and the elimination of welfare mechanisms, implementing a policy of wage restraint extremely unjust, the destruction of unions and the elimination of labor gains in an effort to attract foreign investment. Little has been done, however, to promote job creation, improved education and health services by the State, and the fight against poverty and inequality, even in periods of relative economic growth.

The impact of mortgage crisis caused repercussions beyond the United States. Losses occurred investment banks worldwide. Companies began to refuse to buy bonds worth billions of dollars due to market conditions. The U.S. Federal Bank and the European Central Bank sought to strengthen the money markets by injecting funds available to banks as loans on more favorable terms. Interest rates were also cut in an effort to encourage lending. However, short-term did not solve the liquidity crisis because the absence of money available for banks, as banks remains wary, so they refuse to lend to each other. The credit markets again as banks were still reluctant to lend to them, not knowing how many bad loans may have their competitors. The absence of credit to banks, companies and individuals threat of recession, job losses, bankruptcies and therefore an increase in the cost of living.

“In January 2008 the unemployment rate in the country stood at 4.06% of the Economically Active Population (EAP), which means that about 1 million 786 thousand 628 people were unemployed. This represented an increase of almost 300,000 people, compared to December.

The January unemployment rate this year is higher than that reported in the same month a year earlier, when it stood at 3.96%. By gender, the unemployment rate for men increased from 3.85% to 4.12% and that of women decreased from 4.12% to 3.95% in the first month of 2007 and the same month in 2008. To make a monthly comparison is necessary to analyze the adjusted figures, which show that last January the TD was unchanged compared to the previous month, standing at 3.82%. In particular, considering only the set of 32 major urban areas of the country, unemployment in this area represented 4.81% of the EAP during the month under consideration, (-) 0.17 points below the rate seen in January from a year earlier.”

Unemployment is a problem that has grown around the world, in just one year the International Labor Organization (ILO) reveals that from August 2008 to August 2009, growth is 8 0.6%. The Instituto Nacional de Estadística y Geografía (INEGI) conducted a study on unemployment in Mexico, which was in September 2009 at 6.41 percent of the economically active population, equivalent to 2 million 930 thousand people unemployed, more than one million difference over the same month of 2008

There are several reasons why unemployment exists, since the global crisis, corruption, low education, insecurity, lack of work areas and from other studies but the overall rates of open unemployment, it is found that the rates higher unemployment are the youth. In 2007, Tecnológico de Monterrey university recognizes that college graduates without work experience represent the areas most vulnerable to unemployment in Mexico.

“Unemployment in March 2010 was higher than the unemployment rate in the same month in 2009, show data from INEGI.

With 4.83% of unemployed Mexicans in the country, the unemployment rate March 2010 exceeds the 4.76% recorded in March 2009 when the economic crisis was at its peak.

Ironically, most of the unemployed in the country, 73.4% are people with higher academic standards at the secondary level, while only 26.6% of the unemployed high school dropouts.”

Unemployment is a situation that could be seen coming, and that every crisis leads to a significant increase in unemployment, caused by a fall in sales of enterprises, as well as a strategy for reducing these costs, resulting in the dismissal of workers. In Mexico it is investing in infrastructure and construction, communications, roads, is being supported with unemployment assistance and support for not laying off workers, suggesting companies make technical stops, instead of firing the workers.

In my opinion, the dismissal of workers is an error, because the only ones who can drive forward the business of this crisis are the workers.

Unemployment in Mexico stood at 3.5 percent of the economically active population in 2008, compared to 3.4 percent in 2007 this means an increase of more than 88 000 people unemployed. (Encuesta Nacional de Ocupaciones y Empleo)

Unemployment in Mexico is one of the most important causes of migration. The entry of transnational corporations has destroyed many small family businesses, the use of technology in some companies has shifted to workers in various manufacturing sectors.

Because of the scarcity of jobs in Mexico, underemployment has grown and underemployment as activities such as street vendors carts keepers in the streets, rarely possible to maintain a decent lifestyle. The same applies to low-paying jobs because of low wages are insufficient to meet basic needs.

Poverty levels have increased worldwide, Latin America is no exception, the consequences of the economic crisis affect mostly the lower classes of the population, those who used to stay home and do not migrate have begun to do so compelled

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