The Mexican Institute for Industrial Development and Economic Growth (IDIC) estimated that it will take Mexico up to 6 years to replace the millions of lost jobs during COVID-19 pandemic, according to Milenio.
The IDIC noted that of that 1,4 million jobs that will be lost represent almost 6 million Mexicans who will be affected. In a video conference, the director of the organization, José Luis de la Cruz pointed out that in an optimistic scenario, a fall of 4.6% of GDP is expected, while the most pessimistic scenarios forecast drop more than 8%.
The unemployment due to COVID-19 is worldwide, but it hit Latin America harder. In Brazil, sectors that usually employ the most have never been more pessimistic. In May, nine of the 29 segments reached the lowest level in the survey series, carried out by the Brazilian National Confederation of Industry, according to O Globo. FGV, a Brazilian higher education institution and think tank, reports that in 2020 the average rate of unemployment in Brazil will be 14.9%, above the 9.7% registered 11 years, and above last year’s 11.9% rate.
O Globo also reported that more than half of 100 countries in the world should end the year with higher unemployment than in the 2008 crisis. According to CNN, in the US, one in four Americans has applied for unemployment insurance. Requests placed since March total more than 40 million.