Mexcio Labor Export

Introduction

In the period since the North American Free Trade Agreement has come into effect, the economies of the United States and Mexico have become more integrated than ever, and Mexico has become the leading exporter of migrant workers to the United States. However, most of the Mexico workers are refer to low-wage and low-skill workforce that is often hard-to-reach in the U.S., such as migrant workers, women in the garment industry, farm workers, miners, and other workers in industries dominated by highly mobile transnational corporations.

The Mexican labor that works in U.S. improved Mexican GDP by increased export. Labor export as a comparative advantage of Mexico is identified as one of the major solutions for reducing the unemployment rate.

Problems

With the broadened of Mexican labor to the U.S., the asymmetries in economic between two countries has shaped. Despite Mexico's economic recovery and continued growth, the majority of Mexican remains poor. Poverty, unemployment, limited access to education, and a desire among people to improve their lifestyles are all strong push factors for Mexico working in U.S.

On the other hand, since cheaper labor of Mexico, many Companies prefer to hire the low-cost worker, and U.S. citizen's jobs are lost. Also, with the increasing import labor from Mexico, U.S. GDP decreased. In addition, the increasing populations of Mexico labor import increased illegal immigration of the U.S. as well.

Policy Recommendation

The pattern of migration movement in Mexico is more complicated and there are growing problems in labor export policy. Mexico faced many challenges to its labor export policy including increasing the competitiveness, protecting migrant worker's rights, and improving their welfare.

1. Strengthen export labor training and provide educational opportunities to maintain the comparative advantage.

The pre-departure training is very important for Mexican export labors. Currently, most of the Mexico labors which export to the U.S. are concentrated in the low skill jobs, such as the agriculture famers and manufacturing workers. However, based on demand of the higher productivity, the U.S. has reduced the needs of less skill jobs and trend to increase demand s of high technically skilled workers. Therefore, it is necessary for Mexico government to develop training programs to improve the quality of export labors, particularly increase the number of technically skilled workers.

For instance, the pre-departure training could focus more on increasing the efficiency of language skills, and provide more educational opportunities to encourage the Mexican workers pursue high education. The workers with high technically skilled and high education are trend to earn more wages and with high competitive to