Introduction to National Unemployment Insurance Initiatives
In the Mexican Congress, lawmakers are advocating for the establishment of a national unemployment insurance program. The goal is to provide temporary economic support and immediate assistance to workers who have lost their formal jobs, ensuring a steady income for them and their families.
Current Situation in Mexico
Currently, Mexico lacks a national unemployment insurance program. Workers can opt for unemployment withdrawals from their Afores (private pension funds), but this action negatively impacts their contribution weeks and will be noticeable during retirement.
Scarcity of Unemployment Insurance in the Region
According to the International Labour Organization (ILO), unemployment insurance should be regarded as part of social security, alongside existing benefits such as medical assistance, income security (pension), sickness, disability, work-related accidents, and maternity leave.
On the other hand, the World Bank states that 75% of unemployed individuals worldwide lack unemployment insurance. Furthermore, around 12% of unemployed workers in Latin America and the Caribbean have received unemployment benefits.
In this context, the international organization highlights that only nine countries in Latin America and the Caribbean provide economic support to workers through unemployment insurance: Argentina, The Bahamas, Barbados, Brazil, Chile, Colombia, Ecuador, Uruguay, and Venezuela.
World Bank Financing for Social Protection and Employment Programs
By February 2024, the World Bank had provided approximately $29 billion in financing through its social protection and employment programs across all regions and income levels of countries. This amount includes $16.4 billion disbursed via the International Development Association (IDA), the Bank’s fund for the poorest countries.
Key Questions and Answers
- What is national unemployment insurance? It’s a program that offers temporary economic support and immediate assistance to workers who have lost their formal jobs, ensuring a steady income for them and their families.
- Why is there a need for national unemployment insurance in Mexico? Currently, Mexico lacks a national unemployment insurance program. Workers can opt for unemployment withdrawals from their Afores, which negatively impacts their contribution weeks and will be noticeable during retirement.
- How common is unemployment insurance in the region? According to the World Bank, 75% of unemployed individuals worldwide lack unemployment insurance. In Latin America and the Caribbean, only nine countries provide economic support to workers through unemployment insurance.
- What has the World Bank financed in terms of social protection and employment programs? By February 2024, the World Bank had provided approximately $29 billion in financing through its social protection and employment programs across all regions and income levels of countries, including $16.4 billion disbursed via the International Development Association (IDA) for the poorest countries.
