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COLOMBIA Por: Carla Yinella Gómez Solano Universidad del Norte As is well known, informal employment in Colombia is a persistent phenomenon. According to the most recent statistics, at the national level the incidence of informality is 58% (DANE, moving quarter February - April 2023). A disturbing figure that indicates that 6 out of 10 workers do not have a contract that guarantees their affiliation to the social security system, which mainly affects their chances of retiring one day based on their own contributions. Furthermore, informal employment only has two advantages among the many disadvantages it entails: labor flexibility and an escape route from unemployment. On the other hand, among the disadvantages, the following stand out: very low wages, little job stability and the lack of basic labor benefits and rights (vacations, recreation, occupational risks and other components of assistance and compensation to the worker). In general terms and with few exceptions, this is something that the ILO classifies as work in precarious conditions. Given the high incidence of informality at the national level, very few experts analyze the regional disparities that exist in this context. For example, while in cities such as Bogotá D.C, Medellín A.M, Cali A.M and Bucaramanga A.M, the proportion of informal workers is lower than the national average, in other regions the problem is intensified. All the capitals of the Caribbean Region have an informality proportion higher than 54%, specifically, in Sincelejo and Riohacha where approximately 7 out of 10 people work in the informal sector (informality section of the visualization board). Many consider that informality is the result of the economic structure, whether of the country or the region or even at the municipal level. In other words, it is the product of limitations such as lack of information, access to credit, technology and training, or simply bureaucratic and regulatory barriers that discourage business formalization, which in turn leads to labor informality. This is particularly true for workers in the agricultural sector and many workers in the service sector, where infrastructure limitations, lack of investment and limited access to credit seem to limit the transition to formality despite numerous public policy initiatives focused on this issue. Others consider that informality is born from inappropriate institutional conditions or that they only benefit workers with formal contracts. This consideration includes the establishment of minimum wages that are not consistent with economic reality, the extra costs linked to formal hiring, and union activity. After all, a large proportion of independent workers, including those who are registered as formal companies, choose to contract their work informally. This allows them to save labor costs while still enjoying the benefits of formalization. An example of the latter are small merchants who work in the streets and local markets, who choose to hire informally to avoid the costs associated with formality, such as paying social security and other labor benefits. According to an analysis by OCSA, based on statistics from DANE, the size of companies plays a crucial role in the problem of informality in Colombia. In general, in the trade, hotel and restaurant sector, informal employment is close to 100% in sole proprietorships (even though these companies are formally registered) and is gradually reduced to 0% in medium and large companies. It seems obvious that the larger the size, the more difficult it is for companies to hide their hiring practices from the control agencies. However, in this same sector there are large regional differences. In cities such as Bogotá, Medellín, Cali, Bucaramanga and Barranquilla, the incidence of informality in micro-businesses, while still worrying, is lower. In contrast, in cities such as Riohacha and Sincelejo, around 100% of sole proprietorships and 50% of employees in micro-businesses (more than one and less than five people) are hired informally (informality section by company size of the visualization board). What is striking is that, even though companies are formally registered, they hire workers informally. This phenomenon may be associated with various factors (lack of financial resources, legal knowledge, competitive pressures) but apparently the costs associated with formalizing labor are decisive. Academic research finds that informality does not only affect informal workers. On the contrary, this problem is associated with lower levels of productivity and competitiveness, creates disincentives to investment and reduces the possibilities of economic development. In the country, the obvious solution to combat informality by reducing entry costs or granting benefits for formalization (tax incentives, financing facilities, simplification of procedures) has been numerous: the implementation of electronic systems to carry out procedures online, the reduction of taxes during the first years of operation, the facilitation of access to credits and loans at preferential rates, and the provision of subsidies for the registration and legalization of companies. And without a doubt, the implementation of the One-Stop Business Window (VUE) is a very important step forward. What remains to be seen is that despite these efforts, both business informality and labor informality (even by formal companies) continue to be recurring phenomena. Without a doubt, it is a priority to continue looking for solutions for the informal sector in Colombia. Experience suggests the need for a comprehensive approach that links not only business formalization, but also labor formalization, where the need to make formal hiring more flexible and redesign social security policy by separating it from labor hiring has been repeated many times. COMUNICADO GLOBAL 25 Abril 2024 IOM Study: Venezuelan migrants and refugees in Colombia generate an economic impact equivalent to 529.1 million dollars Geneva/Panama City, April 25, - In 2022, Venezuelan migrants and refugees in Colombia generated an economic impact in that country equivalent to 529.1 million dollars according to a new study carried out by the International Organization for Migration (IOM). This highlights the significant economic contribution that migrants and refugees from Venezuela make throughout Latin America and the Caribbean. “Migration functions as a driving agent of development and these studies provide empirical evidence that supports this assertion and demonstrate how migration can promote the growth of social and economic strength in host countries,” said Diego Beltrán, IOM Special Envoy for the regional response to Venezuelan migrant and refugee flows. The Fiscal Impact Study of Venezuelan Migration in Colombia: Reality versus Potential, shows that the fiscal impact in 2022 represented almost 2% of the total tax revenues in that country and a potential increase is projected to reach the figure of 804.3 million dollars with the full regularization of Venezuelans in 2023. A notable aspect of the study is the high employment rate of Venezuelan migrants since 90% of the working-age population has a job and 20% has formal education. Only 18% are employed in their field of interest and many people work in the informal sector, which limits income generation. Additional studies were carried out in Aruba, Costa Rica, Chile, the Dominican Republic and Peru, which served to further demonstrate the positive impact of Venezuelan migrants and refugees. Of particular note is the case of Panama, where Venezuelan entrepreneurs have invested more than 1.8 billion dollars in the last decade, creating approximately 40,000 jobs, 70% of which were filled by Panamanians. As of April 2024, there are 7.7 million Venezuelan migrants and refugees in the world. Of this number, 6.6 million live in Latin America and the Caribbean. The study also highlights the fact that young migrants encounter difficulties when looking for employment, and that, in the case of women, employment rates are lower compared to men. On the other hand, despite the efforts of development actors and financial organizations to improve employment prospects and public services for migrants and refugees, difficulties in validating their professional qualifications, plus possible situations of discrimination and xenophobia, impede their socioeconomic integration. The conclusions of this study, which was carried out in collaboration with the Chamber of Venezuelan Businessmen, Executives and Entrepreneurs Abroad (CAVEX), the Konrad Adenauer Foundation and the Ideas for Peace Foundation (FIP), mark a fundamental moment in the recognition of the transformative potential of Venezuelan migrants and refugees in terms of promoting inclusive communities throughout Latin America and the Caribbean. They create the foundations for the implementation of policies and initiatives to promote their integration and sustainable development in the region. Colombia hosts the largest number of migrants and refugees from Venezuela, with more than 2.8 million people in January 2024, which represents an important economic and cultural force and wealth for Colombia. Recently, Latin America experienced an accelerated process of south-south migration as a result of the political and economic crisis experienced in Venezuela. This involved the departure of more than seven million people from the country, of which almost two and a half million arrived in Colombia. The situation implies an immense challenge for Latin American governments, especially to achieve adequate socioeconomic integration, where employment opportunities and income generation are decisive. And the challenge is broad. According to the study carried out by Cider, by 2021, 58% of Venezuelan migrants in Colombia were working, while their unemployment rate was 18%, much higher than the national average. In addition to their high level of unemployment, the study also showed that this population has a precarious employment condition: more than 73% are in informal employment, while 9% are underemployed. Migrants, mainly Venezuelans, not only participate more in the labor market, but they work more hours. On average, they normally work about 50 hours a week, much more than Colombians, whose normal weekly schedule is 44 hours (Sánchez and Munevar, 2020). One of the great challenges of the migrant integration process is obtaining a stable job with all the legal guarantees that allows them to both guarantee their basic needs and plan a new life project in the host country. To help in this process, the Intercongregational Network, of which Scalabrini International Migration Network - SIMN is a part, has initiated an intervention and support strategy to accompany the integration process of migrants. This strategy had an important input, which was the study prepared by Cider in 2021 on the map of job opportunities for Venezuelan migrants in Colombia. This study identified the main sectors with the potential to hire Venezuelan migrants in the short, medium and long term, taking into account the economic structure, sectoral dynamics and the work skills of the working population. Additionally, the study addressed the main barriers to access to the labor market that Venezuelan migrants face in the country and made a detailed analysis of the current public policy on the matter, including a complete normogram. Based on this study, Cider developed a series of recommendations for intervention, governance and public policy. The study revealed the need to go deeper and more detailed in various aspects, but mainly to carry out a more detailed study in the territories where the network is present. Additionally, the importance of understanding the characteristics of employment to determine the relevance and quality of this for the migrant was also identified, beyond whether or not it is formal. The present study thus aims to identify the relevant characteristics of the labor market at the local level, concentrating the analysis on the cities of Bogotá, Cúcuta, Bucaramanga, Apartadó, Quibdó, Palmira and Yopal. The study includes a basic characterization of the quality of employment, to determine the trajectories of job opportunities for migrants in the country, a sectoral analysis by city and a description of the quality of employment accessed by migrants. To this end, the present analysis creates a map of the labor supply and opportunities for the labor insertion of migrants in the cities studied and a mapping of the quality of employment for the same population. The results of both maps allow us to understand the conditions of the labor market for Venezuelan migrants and generate recommendations that contribute to strengthening the initiatives and programs aimed at labor insertion developed by the Intercongregational Network in Colombia. The report presents the methodology, the sources of information and the descriptive results of the labor market and the main dimensions of employment quality. In addition, the Map of Opportunities is developed, which details the current conditions of labor demand in Colombia and the confluence between supply and demand for the migrant population in the case study cities. The informal economy of migrants in Medellín, especially of the Venezuelan population, has grown significantly in recent years. According to DANE figures in 2023, the informality rate in Colombia was around 57%, but in Medellín this figure is lower, around 42%. However, among the migrant population, the percentage is considerably higher, exceeding 70%. Impact of Venezuelan Migration: Venezuelan Migration in Medellín: It is estimated that around 95,000 Venezuelans reside in Medellín, and the majority are in a situation of labor informality. This figure represents a great challenge for the city in terms of integration and regularization. Most Common Sectors: Venezuelan migrants in Medellín are concentrated in informal activities such as street trading, food sales (mainly in parks and downtown areas), construction, recycling, and domestic service. Areas such as downtown, Laureles, and Belén are hotspots for these activities. Problems: Lack of Documentation: A high percentage of migrants do not have work permits or adequate legal documentation, which prevents them from accessing formal jobs. The Secretariat of Economic Development of Medellín has identified that more than 80% of migrants in the informal economy do not have documents that allow them to transition to the formal market. Social Vulnerability: The majority of migrants in the informal economy do not have access to social security, pensions or health services, which increases their vulnerability in terms of living conditions. In addition, precarious income prevents many from improving their economic situation. ECUADOR In the world, one in every seven inhabitants of the planet is a migrant, this is a different phenomenon compared to previous decades, statistics from international organizations agree that 93% of informal employment is found in emerging and developing countries (ILO, 2018); It is also noted that informal work among men represents 63% while among women it reaches 58.1% (ILO, 2018) and that those who immigrate and enter the informal economy do not do so of their own free will, but for survival and because their condition does not allow them to access other means of Currently, Latin America has a population of approximately 1,013 million inhabitants, of which 47.7% work in the informal sector and of them at least 14.31% are migrants. This migratory flow has changed the demographic factor of the host countries; the structure by sex and age of the population, the destination regions increase and consequently the problems grow. Official sources state that there are 17 million inhabitants in Ecuador, of which 47% are in the EAP and of these, 67.3% are in the informal sector (approximately 5% are immigrants), of which 44.5% are women while 42% are men. According to the Migration Registry of Ecuador, from May 2017 to July 2019, 1,673,980 Venezuelans have entered Ecuador, of which 341,561 remain in the country. It is established that, of the 100% of professionals, scientists and intellectuals who enter the country, 18% come from the US, 49% from Colombia and 33% from Venezuela. Of the 100% of technicians and mid-level professionals, 34% are from the US, 33% from Colombia and 33% from Venezuela. Regarding support and administrative staff, 40% come from the USA, 37% from Colombia and 23% from Venezuela. Regarding service workers and merchants, 46% are from Colombia and 54% from Venezuela; Regarding retirees and pensioners, 69%. In the student category, 32% are from the USA, 33% from Colombia and 35% from Venezuela. Regarding minors who have entered the country, 14% correspond to the USA, 62% to Colombia and 24% to Venezuela; while 35% of Colombians do not specify their occupation, as well as 65% of Venezuelans. Considering those who do not specify their occupation, 8.4% of the total who have entered the country until 2017 could be in the informal sector. According to the National Institute of Statistics and Census, the Riobamba canton has a population of 145,324 inhabitants, of which 47.38% are in the urban area. In Riobamba there are about 300 Venezuelans who arrived during the last year and are dedicated to informal commerce (El Comercio, 2017). They describe it as a quiet and small city, where life is cheap and there are still options for growth. Of the 367 individuals who were interviewed, 44.96% are foreigners, as shown in Chart 3, which shows the importance of their presence in the territory, since the effect on the State Budget is decisive in the short, medium and long term. Of the foreign informal workers who are in the Riobamba Canton, 61.81% are men and 38.19% women. Of course, this has an explanation, people who immigrate are often men, a fact that seems relevant considering that it is a different phenomenon than that existing around the world. In Riobamba, Ecuador, the informal economy is also a significant phenomenon, especially among the migrant population. This city, known as the “Sultana of the Andes,” has received migrants from various regions, especially from Venezuela, who are looking for better economic opportunities. Informal Economy in Riobamba: Informality Rate: According to data from the National Institute of Statistics and Census (INEC), the informality rate in Ecuador in 2023 was estimated at around 47%. In Riobamba, although there are no exact disaggregated figures, it is estimated to exceed the national average, especially in vulnerable sectors such as migrants. Migrants in Informality: Venezuelan migration has impacted Riobamba's informal economy. It is estimated that more than 60% of Venezuelan migrants in the city are employed in informal jobs, such as street vending, construction, and domestic work. As in other cities, the lack of documentation and formal employment opportunities is a determining factor. Main Sectors: Street Trading and Markets: Migrants tend to concentrate in street trading in the city's markets and main streets. The sale of food, clothing and various products is common in areas such as La Merced Market and the Riobamba Wholesale Market. Construction and Services: Many migrants, especially men, work informally in construction, while women are often employed in domestic work or selling prepared foods. Problemáticas: Vulnerability and Social Exclusion: Informality in Riobamba deprives migrants of benefits such as social security, job stability, and access to health services. This leaves them in a situation of high economic and social vulnerability. In addition, discrimination against migrants in the search for formal employment is a constant barrier. Lack of Institutional Support: Although the Ecuadorian government and international organizations have attempted to implement integration and support programs for migrants, Riobamba's capacity to absorb this population and offer them formal opportunities is limited. CHILE Informal work: Increase in migrants, data and reasons associated with this phenomenon In four years, informality in jobs among foreigners rose from 28.6 to 31.8%. Experts detail the causes and differences with the Chilean population. The informal employment rate of Chileans fell from 29.3% to 27. % in four years. However, in the case of the foreign population, the phenomenon is different, the figure increased and went from 28.6% to 31.8%, according to an analysis by the Economic Context Observatory (Ocec) of the Diego Portales University (UDP), which used the last quarter of 2019 as a reference to study the behavior of this indicator. The researchers took as a sample the figures from 2019 to the same period last year and showed the evolution of this phenomenon. They also show that, during those dates, there were 117,254 new jobs taken by foreigners, but of that number, 57% were informal. The study makes a section on nationalities and distributes it as follows: • Bolivians: The informal employment rate went from 32.3 to 47.6%. • Venezuelans: The figure was 24.8% and increased to 32.6%. • Peruvians: In this case, the phenomenon was different, as it went from 39.5% to 26.8%. • Colombians: The informal employment rate decreased by 2.5%. The factors that explain it Carmen Cifuentes, researcher at CLAPES UC, points out that there are various factors that influence labor informality and more so in the case of foreigners: “The data show that informality in Chile prevails among demographic groups such as women, young people, older adults, migrants and workers with lower educational levels. Similarly, there is a higher incidence of informality in elementary (or low-skilled) occupations, self-employed workers, sectors such as agriculture and other services, as well as in smaller companies.” Cifuentes explains that, in the case of migrants, these factors are related to “legal or administrative barriers that hinder or slow down their “regularity”, that they have the necessary residence permits to work formally. They also often face difficulties in homologating their qualifications, which also limits their employment opportunities in the formal market. Another factor that has an impact is discrimination, which also becomes a barrier.” For his part, Jorge Berríos, academic director of the Unegocios Diploma in Finance at the FEN of the University of Chile, explains that the informal employment rate of foreigners has grown due to various factors and points out that the increase in the country's general employment rate has an impact on the migrant population, because "companies are preferring to hire Chilean labor (...) in most countries where there are immigrants, informality is very common among foreigners, because they tend to be more entrepreneurial and more informal due to limited access to work given their condition, and this increases when there are crisis situations, such as the one we are experiencing now in terms of the unemployment rate." The expert also points out that the general increase in unemployment rates in the country is an important factor and mentions that “as the unemployment rate increases and when seeing the affected sectors such as construction and commerce, local labor is preferred and in this case there was a lot of foreign labor, especially in construction work and as they have decreased, logically there are higher unemployment figures and this makes these people look for ways to subsist with a degree of informality. Therefore, the figures agree with what is happening and this will continue as the unemployment rate increases.” The differences The CLAPES UC researcher refers to the reasons that explain the differences between both populations (Chileans and foreigners) in terms of unemployment rates and comments that, until the end of 2020, labor informality was higher among Chileans compared to migrants. However, “informality has increased strongly among the foreign population, so that this situation has been reversed. On the one hand, the number of migrants arriving in the country has increased, as has the proportion of migrants entering illegally, that is, those who do not have the “papers” to apply for a formal job. Another element that we cannot ignore is that there is currently a limit on the proportion of foreign workers who can work in the same company, which is 15%.” Cifuentes also comments on the projections in this area and explains that as long as foreigners continue to enter Chile, especially in illegal ways, where they also participate in the labor market, “it is very likely that informality among them will continue to increase.” Santiago In Chile, the city of Santiago, specifically in the central districts such as Santiago Centro, Estación Central, and Recoleta, is where the highest concentration of informal commerce by migrants is found. These areas are known for their high flow of people and commercial activity, which has generated a favorable environment for the informal economy. Key Factors: Venezuelan and Haitian Migrants: Venezuelan and Haitian migrants make up a large part of the informal workers in Santiago, dedicating themselves to the street vending of food, clothing, and other products in the streets and in busy commercial areas such as Avenida Alameda, Meiggs, and near metro stations. Critical Areas: Estación Central and the Meiggs neighborhood are neuralgic points of informal commerce. The offer of products is wide, from electronics to textiles, and many migrants find their main source of income in these areas due to the lack of formal opportunities. Problems: Lack of Regulation: Informal trade in these areas has generated public order problems and tensions with formal merchants, as well as challenges in regulation by municipal authorities. Social Vulnerability: Informality implies that these migrants do not have access to social security or labor benefits, which places them in a vulnerable situation in the face of economic and labor instability. In summary, Santiago, especially in its central areas, is the city in Chile with the greatest presence of informal trade carried out by migrants due to population density and the concentration of informal opportunities. BRAZIL 1. Dimension of the Informal Market According to the International Labor Organization (ILO), informal work in Latin America represents between 50% and 60% of the workforce, and Brazil is no exception. In 2022, approximately 40% of the Brazilian workforce worked in the informal economy, which includes a significant number of migrants. Dominant Sectors: Migrants are concentrated in sectors such as street vending, cleaning, construction, domestic services, and gastronomy. In cities such as São Paulo, Rio de Janeiro, and Boa Vista, it is common to see migrants, especially Venezuelans, working in informal sales. Feminization of Informality: A large number of migrant women work in the informal sector, mainly in domestic service and street vending, where they face triple vulnerability: being migrants, women, and informal workers. 2. Impact of the Venezuelan Migration Crisis The flow of Venezuelan migrants to Brazil has been a key factor in the expansion of the informal market. According to the United Nations High Commissioner for Refugees (UNHCR), more than 400,000 Venezuelans have entered Brazil since 2017, and many are in vulnerable conditions, working informally to survive. Border Cities: In Roraima, a state bordering Venezuela, the impact of migration is evident. Boa Vista, the state capital, has seen significant growth in its population due to the arrival of migrants, many of whom engage in informal work due to the lack of formal employment options. 3. Public Policies and their Impact Brazil has implemented policies such as “Operação Acolhida” (Operation Welcome), a program that aims to manage the Venezuelan migration crisis through social and economic integration. However, gaps between policy and reality persist. Regularization Challenges: Despite policies to facilitate the regularization of migrants, many face difficulties in accessing the documents necessary to work legally. This pushes them into the informal market, where they lack labor rights and social protection. 4. Discrimination and Exclusion Racial discrimination and xenophobia are significant obstacles faced by migrants in Brazil, especially those from Haiti, Venezuela, and Africa. The negative perception of migrants in some sectors of Brazilian society has made it difficult for them to enter the formal labor market, forcing them to turn to the informal economy as their only source of income. Cases of Discrimination: Haitian migrants, in particular, have reported discrimination in accessing formal employment, often being relegated to precarious and informal work, even if they have professional skills or higher education. 5. Role of Non-Governmental Organizations (NGOs) NGOs, such as Caritas Brazil and UNHCR, play a crucial role in providing assistance to migrants, helping them find work, access health services, and obtain legal documentation. However, the resources of these organizations are limited compared to the magnitude of the problem. Support Networks: These organizations also facilitate the creation of support networks among migrants, which is crucial for survival in the informal market. Through these networks, migrants share information about job opportunities and available services. 6. Social and Economic Consequences The rise of the informal market has significant implications for the Brazilian economy. While this sector provides a livelihood for thousands of migrants, it also contributes to the precarization of work and tax evasion, affecting public finances and perpetuating inequality. Inequality and Social Exclusion: Dependence on the informal market perpetuates the social exclusion of migrants, as they lack access to benefits such as retirement, health insurance, and legal protections. This exacerbates existing inequalities and creates barriers to the social and economic integration of migrants in Brazil. Conclusions and Recommendations 1. Migration Policy Reform: Migration policies need to be reformed to facilitate the regularization of migrants and their inclusion in the formal labor market, reducing dependence on the informal sector. 2. Labor Integration Programs: Implement programs that train migrants in skills demanded by the formal market, such as language learning and recognition of foreign degrees. 3. Combat Discrimination: Promote awareness campaigns to reduce xenophobia and discrimination towards migrants, promoting their social and economic inclusion. 4. Strengthen NGOs: Increase support to NGOs and community organizations that work with migrants so that they can continue to provide essential services and facilitate integration. 1. Migration Context São Paulo has historically been a point of arrival for migrants, both national and international. In the last decade, it has received a large number of Venezuelan, Haitian, Bolivian, African, and other migrants, who seek opportunities in Brazil's largest and richest city. However, many of them are trapped in the informal economy due to lack of documents, language barriers, and labor discrimination. Migratory Diversity: The city is home to significant communities of Venezuelan, Haitian, Bolivian, Paraguayan, Senegalese, and Angolan migrants. Each group faces particular challenges in their insertion into the labor market, and many are forced to work in the informal economy. 2. Main Informal Sectors Migrants in São Paulo are mainly found in informal sectors such as street vending, construction, clothing manufacturing, domestic service, and gastronomy. For example, informal clothing factories in the neighborhoods of Brás and Bom Retiro are known to employ migrants, especially Bolivians, in exploitative conditions. Street Vending: São Paulo has a large number of street vendors, including many migrants, who sell everything from food to electronics. Street vending is an accessible way for migrants without documents or established networks. Sewing Workshops: The informal textile industry is one of the sectors where migrants, especially Bolivians, are exploited. These workshops often have deplorable working conditions, with long hours and low wages. 3. Policies and Regulations São Paulo has implemented some integration policies for migrants, such as reception centres and document regularisation programmes. However, the capacity of these programmes is limited in the face of the growing number of migrants, and many are unable to access them, leaving them trapped in informality. "Centro de Referência e Atendimento para Imigrantes": This centre in São Paulo offers support to migrants on issues such as documentation, job training and social assistance. Although useful, it does not meet the high demand. 4. Social and Economic Challenges The growth of the informal market in São Paulo has exacerbated problems of social inequality and economic exclusion. Informal migrants face precarious working conditions and lack access to basic services such as health and social security. This creates a cycle of poverty that is difficult to break without more effective government interventions. Discrimination and Xenophobia: Migrants in São Paulo face discrimination both in the labour market and in everyday life. This pushes them further into informality and perpetuates social marginalization. 5. Impact on the Local Economy The informal economy has a significant impact in São Paulo, providing a basic livelihood to thousands of people, including migrants. However, it also has negative consequences, such as a lack of tax collection and the precariousness of work, which affects the economy in general. Conclusions São Paulo is one of the cities in Brazil where the situation of the informal market among migrants is most critical. The high concentration of migrants in informal sectors underlines the need for more inclusive public policies that facilitate migration regularization and integration into the formal market. Improving the conditions of migrants in the city will not only benefit these communities, but will also have a positive impact on the economy and social cohesion of São Paulo. MÉXICO Nearly 60% of workers in Mexico are employed in informal jobs. However, in some states, practices have been identified that have reduced informality and a national program for the formalization of employment has been launched. These initiatives, together with the creation of unemployment insurance and a universal pension, within the framework of stable and robust economic growth, can promote the creation of formal and productive jobs and discourage permanence in informality. The informal market in Mexico is a large-scale phenomenon, with deep historical, economic and social roots. This sector is a reflection of the country's economic structure, which offers few formal opportunities for a large segment of the population, including migrants. Mexico has been a host, sending and transit country for migrants, which has generated a particular dynamic in its informal economy. Research on the Informal Market in Mexico 1. Dimensions of the Informal Market Mexico has one of the largest informal economies in Latin America. According to data from the National Institute of Statistics and Geography (INEGI), approximately 56% of the employed population in Mexico works in the informal sector (2022). This sector includes activities not officially registered, from street vendors and construction workers to domestic employees. Migrants in Informality: Many migrants in Mexico, both international (mainly from Central America, Haiti, and Venezuela) and internal (from rural to urban areas), are forced to participate in the informal economy due to the lack of opportunities in the formal sector. 2. Areas of Highest Concentration The country's main cities, such as Mexico City, Guadalajara, Monterrey, and Tijuana, present the highest concentrations of informal activity. Tijuana's proximity to the US border makes it an important arrival and transit point for migrants, many of whom end up working in the informal economy. Mexico City: With its huge population and economic opportunities, the capital is a magnet for migrants. The informal market here ranges from street vendors to people working in informal manufacturing workshops and small family businesses. Tijuana: Due to its proximity to the U.S. border, Tijuana has seen an increase in migration, especially from Central Americans seeking to cross into the United States or stay in the city waiting to regularize their immigration status. Many migrants engage in informal work, such as street trading or construction, often in precarious working conditions. 3. Migration and the Informal Sector Migration to Mexico has grown significantly in recent decades, with a sharp increase ipeople from Central America and other countries. Difficult conditions in their countries of origin push these migrants to seek opportunities in Mexico, where they face barriers to accessing formal employment. Central American Migration: Violence, poverty and lack of opportunities in countries such as Honduras, El Salvador and Guatemala have driven the migratory flow to Mexico. Without legal documents or support networks, many of these migrants end up in the informal market, where they can earn enough to survive but not enough to prosper. Internal Migration: Internal migrants, i.e. people who move from rural areas to cities in search of better opportunities, are also a significant part of the informal market in Mexico. These migrants often work in sectors such as construction, domestic service, and street vending. 4. Impact of Migration Policies Mexican migration policies have been inconsistent, oscillating between containment measures and integration programs. Although initiatives have been implemented to regularize the status of some migrants, most continue to face difficulties in obtaining documents that allow them to work formally. Temporary Worker Program: The Mexican government has launched some programs to regularize temporary migrant workers, but their reach has been limited. Most migrants remain vulnerable to labor exploitation and social exclusion. Impact of the USMCA: The United States-Mexico-Canada Agreement (USMCA) has also influenced labor dynamics by establishing stricter labor standards, which has indirectly affected the informal market, but these changes are not yet fully reflected in the conditions of informal workers. 5. Key Sectors of the Informal Market Migrants in Mexico are concentrated in certain key sectors within the informal economy: Street Vending: One of the most visible activities of the informal economy in large cities. Migrants, both international and internal, are dedicated to the sale of food, clothing, accessories, and other products on public roads. This sector is very competitive and often operates illegally, facing constant evictions by the authorities. Construction: Migrants, mostly young men, work in the construction of housing and commercial buildings, often without contracts or job security. This sector is known for its low wages and lack of social protection for workers. Domestic Work: Migrant women, especially from Central America, often find employment in domestic service, a historically informal sector in Mexico. Without formal contracts, these workers are exposed to abuse and exploitation. 6. Challenges and Issues The informal market for migrants in Mexico presents a number of significant challenges: Lack of Labor Rights: Informal workers do not have access to basic labor rights, such as social security, pensions, or protection against unjustified dismissal. This leaves them in a situation of extreme vulnerability. Exploitation and Abuse: Informal migrants often face abusive working conditions, with long working hours, low wages, and the constant threat of being fired without notice or compensation. Discrimination and Xenophobia: Migrants, especially those of Central American and Haitian origin, are often subject to discrimination and xenophobia, making it even more difficult for them to find decent and stable jobs. Conclusions and Recommendations 1. Strengthen Regularization Policies: It is essential that Mexico strengthens its migration regularization policies to allow migrants to access the formal market. This would include facilitating the obtaining of work permits and other legal documents. 2. Labor Integration Programs: Implement job training programs and support for the insertion of migrants into the formal market. This could include partnerships with the private sector to encourage the hiring of migrants and the formalization of their jobs. 3. Protection of Rights: Ensure that migrants, including those in the informal economy, have access to basic labor rights and protection from exploitation. This could include the implementation of stricter labor laws and greater control over working conditions in informal sectors. 4. Combat Discrimination: Promote awareness-raising and public education campaigns to combat discrimination and xenophobia against migrants, promoting a culture of inclusion and respect for migrant workers.
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