The Mexican group of companies says the proposed ban on outsourcing would be a devastating blow to the country’s economy

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February 04, 2021

In a blog post on Wednesday, Coparmex, Mexico’s employers’ association, said a government proposal to ban outsourcing would be a blow to Mexico’s economy, competitiveness and families. Outsourcing is a term in Mexico that can include staff.

Last year, the Mexican President Andrés Manuel López Obrador proposed to ban outsourcing because of abuse by some companies.

However, Coparmex reported that an estimated 4.1 million workers are outsourced, which is 20% of formal employment.

The organization said a ban on outsourcing would make Mexico less competitive with other economies such as Argentina, Canada, Chile, Colombia, the US, Peru and Uruguay.

In addition, the number of people in the informal sector would increase, leading to lower incomes, the organization argued.