Mexico’s record low jobless rate a result of investing in education

Mexico is experiencing its lowest unemployment since 2008, according to recent statistics.  More Mexicans are entering the workforce everyday – which is positively linked to investment in education.

And the country’s strong  sector has held it up through economy difficulties.1024px-Mexican_construction_workers

Investing in their workers

In 2014, a U.S. News & World Report shows the Mexican workforce is increasingly educated.

Between the years of 1990 and 2010:

  • Basic education increased from 56.7 to 9%
  • Upper secondary educationincreased from 14.3 to 3%
  • Higher educationnearly doubled, moving from 8.3 to 5%
  • Mexico’s uneducated population was cut nearly in half, dropping from 13.4 to 9%

Mexico’s workforce is diverse, and youth are well represented – with 42% of its 117 million people between the ages of 20 and 49 years old.

And, it’s thanks to the country’s commitment to education.

Training and education a standout

USAID is one organisation that’s part of this growth – supporting Mexican initiatives to balance the supply and demand of a skilled youth labour force.

This organisation focuses on incorporating internships in upper secondary school curriculum, improving school-based career guidance activities, enhancing job placement systems, and creating an online employment portal.

One of their workforce development initiatives includes the Cleantech Challenge.  This initiative promotes the creation, financing, and growth of clean technology companies in Mexico – through an innovative annual business plan competition.  “Green” companies compete for a monetary reward and benefit from mentoring, capacity building, with access to investors.

Another success to come out of USAID’s efforts is the Juarez Microlending Program.  This program provides access to credit and financial and business education to low-income women micro-entrepreneurs living in marginal areas of Ciudad Juarez.  These women require working capital to improve their economic situations, through self-employment and diversifying their income.

Expanding Mexico’s Vocational Education & Training

In 2015, Mexico signed a “Joint Declaration of Intent” on cooperation in vocational education and training with Germany – which sees both countries agree to develop their work together.

The partnership sets out plans to achieve the following:

  1. Creation of the strategic and regulatory foundations of the Mexican model of dual vocational education and training (MMFD)
  1. Improvement of the quality of dual training in selected specialisms
  1. Improvement of the organisation and management of dual vocational education and training
  1. Strengthening of capacities and personal effectiveness of the stakeholders within the MMFD

Mexico has committed to contribute €5 million with the aim to strengthen the training between companies and vocational schools.  This will be achieved by reshaping it into a results-oriented and practical system.

Mexico’s overall economic growth marked 2.5% in 2015 and it’s a country that is growing – by investing in its people first, through education.

To invest in education in your country, region, or TVET system contact Wendy Perry via wendy@wpaa.com.au.

March 2016

 

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