Business News

Nearly 60% of Mexicans flip to a second job to make more money

The rise in the country's unemployment rate was a consequence of the pandemic.

Grow your business,
Not your inbox

Stay up to date and subscribe to our daily newsletter now!

March
2, 2021

4 min read

This article was translated using AI technologies from our Spanish edition. Errors can occur due to this process.

The opinions expressed by the entrepreneur's contributors are their own.

Loss of jobs, lower income, and higher spending are some of the consequences of the COVID-19 pandemic in Mexico. To try to balance their personal finances, 59.6% of Mexicans have looked for other sources of income According to the financial services platform Coru, either through a second order or through the sale of various items.

In this economic scenario, data from the platform shows that 63.8% of Mexicans struggle to cover their basic monthly expenses Like paying for electricity, gas or rent and only 18% of the population can cover all of their expenses without major problems. This suggests that personal finance mismanagement is a widespread problem in the country.

“The ability to make ends meet largely depends on the balance between income and expenditure. However, the current context is extremely complex as at least 74% of Mexicans have seen some income decline in the past 12 months. As a result, managing personal finances well has become a challenge, ”confirms Fernando González, partner with QED investors and CEO of Coru.

From sales to pastries, Mexicans have the opportunity to make extra cash

The rise in the country's unemployment rate was also a result of the pandemic. According to the National Employment and Employment Survey (ENOE), the underemployment rate (economically employed population who, however, has the need and availability to offer more working time) decreased from 4.3 million people in the third quarter of 2019 to 8.7 million in the same period of the year 2020.

This has resulted in Mexicans resorting to a variety of activities ranging from selling, teaching, baking, cooking, investing, reselling, or jobs such as masonry or cleaning in an attempt to increase their incomes and repay their payments generate additional income.

Inclusion and financial literacy, the keys to healthy finances

In addition to income, educational level is also related to the ability to cover expenses each month, as people with a college degree or higher manage their personal finances more efficiently than people who just went to college. Basic training.

“The main barriers to financial inclusion relate to the lack of knowledge, understanding and trust in financial services. If these challenges are met, these services will be widely deployed and accessible and will benefit large numbers of people who need tools to improve their financial health, ”added the Coru CEO.

With this in mind, financial inclusion helps better manage finances by providing users with the information they need to know and choose the financial products that best suit their needs, thus multiplying the range of options offered. your bank.

Related Articles