Transcript Labor & Education : Human Capital in Mexico

Professional Labor &
Education:
Effective Human Capital in México
Effective Human Capital
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Scope:
Whether included in public policy reports, posted on bulletin boards, or
communicated through other media; everyone shares a consensus: People are
the most important resource and number one competitive weapon. Successful
countries know that:
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historical competitive advantage is no longer enough, and a future edge will
come from making better use of people,
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The only way that a country can sustain performance excellence is with people,
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a countries' labor culture is how to educate, motivate, and empower its people.
Human capital is:
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A stock of skills
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A Fundamental asset of productivity
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It is related to wage growth
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It is related to the gross national product growth
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And the professional labor is the human capital at its best.
Importance of Human Capital
to Economic Growth
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In today’s workplace, managerial skills and technological
innovation, imposes demands in higher education.
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An educated population creates wellbeing for a whole nation
and impacts a society in several segments: increasing tax
revenues, pushing the economic growth and accelerates
political involvement and democracy.
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The availability of professional labor determines the rate of
economic growth and its integration to the world markets.
Thus, the pattern of human capital should be taken an
integral part of any economic development policy.
Mexican Educational Policies to
increase the availability of
professional labor
First stage:
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9-year compulsory education (6-16 years old)
Mandatory elementary education
Mandatory junior and high education
Second Stage, open more public schools for:
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Senior high school education in rural communities (15-19 years
old)
Third Stage, increase the investment in technical higher
education
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Professional Education (18-24 years old)
Universities with emphasis in engineering and math learning
More Technical colleges (computing skills and technical skills)
Teacher-training institutes (mid range technical professionals)
The results: in Education policies
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Despite the public policies of compulsory education
since 1992, Mexico has not been yet able to cope
with the educational demand.
First stage has not been accomplish fully, especially
in rural areas (the enrollment rate in this segment in
the whole country is 85% in 2005).
As a result of lack of accomplishment in those public
educational policies: the supply and demand of
professional labor is ineffective.
This can be considered as an ineffective Human Capital
in Mexico
This is the ineffective pattern created by those policies and a reason as to why
the highly educated graduates in Mexico do not fit to the model of distribution
of the supply and demand of professional labor, due to these factors:
More foreign direct investment has been channel to create lower labor skill
work
b) More public spending is in infrastructure (highways, bridges, hospitals,
dams, etc)
c) More opportunities to work are offered by informal or underground sector.
d) More investment in higher education has been channeled to social sciences
(law, sociology, philosophy, social work, etc) and medicine
a)
Main industries in Mexico: characteristics and
distribution %
Division of activity
Ratio
Food, Beverages and Tabacco
Textile and clothing
Wood,wood product
Paper,paper product and printing
Chemicals,oil derivatives and coal
Non-metallic mineral products
Basic Metallic Industries
Metallic Products,machinery and equipment
Other manufacturing industries
35.6%
14.3%
12.9%
6.8%
3.2%
8.1%
0.1%
17.3%
1.8%
Industry in Mexico
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90 % of the companies in Mexico are micro, 8 % are
considered small, 1 % medium, and only 1 % large
industries.
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The industrial plant in Mexico 36 % is in food, textiles,
auto parts, and cement. Other machinery and
equipment come second with 17 % ; all the other
engineering-relevant industries (science an
technology based) totals less than 14%.
Mexican economy is highly service
oriented. Formal and informal.
Labor distribution
Labor distribution
80.00%
70.00%
60.00%
50.00%
Ratio 40.00%
30.00%
20.00%
10.00%
0.00%
71.20%
18.60%
10.20%
High School
Senior High
Education
University
Work distribution
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71% of the employees have no more than 2 years of high school
education, while 19% of them upper secondary education and
the remaining 10 % received university level education.
But, a sharp shortage yet under-utilization of
higher educated labor force in Mexico
Science & Engineering Industries
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The infant hi-tech industries in Mexico will create
more jobs and diversify the economy.
To invest in the future, Mexican government should
sensibly target investments in science and
engineering education.
A strong scientific, engineering and technology
community has postive macro-economic effects on
the long-term growth of Mexican economy.
There also exist other benefits of innovation,
manufacturing leadership, invention, etc.
The Status Quo of R&D in Mexico
In Mexico, our university graduates in science
and technology is just 2% in 2001 and has
been growing, but we are not creating the
jobs to employ them.
To push the sector we need to employ our
professionals to the fullest
The Prospects
What we see in Mexico today are:
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We produce more engineers that we can employ.
Even though Mexico is currently generating more
jobs in: semiconductors, and harnessing and basic
electronics.
Specially in maquiladora (twin plants) is not enough