Employment Crisis and Instability Among YOUTH: A Comparative Analysis Between Formal and Informal Economy in Mexico 1995-2013

The global financial crisis that began in 2008 has caused negative imbalances in all economic areas, both in developing and developed countries. Specifically in global labor markets, decline in job creation has driven high unemployment rates and overall precarious working conditions. International reports indicate that young people (15-24 years) have been most affected by job insecurity. Specifically in Latin America the youth employment situation is alarming in the short term and urgent inclusive policies are needed. In the case of Mexico, in this study, we demonstrate a comparative analysis between formal and informal economy, that the instability of youth in the labor market may not be as extensive and damaging, as affirmed by international reports. Early results indicate that youth labor instability coincides with international studies as the same stratum pushes to work in informal economy, however, when reviewing the labor dynamics there are some typical issues which are undervalued by the international studies. According our analysis, population occupied in informal economy recorded lower rates of imbalances compared to population occupied in formal economy or underemployed. Youth occupied in informal economy indicates that they have good and stable prospects of labor.