Making good on a campaign promise, Jalisco Governor Aristoteles Sandoval has announced that he will shortly provide details on benefits for the unemployed.
“Those who have lose their jobs will not have to worry about how they are going to feed their children,” Sandoval said. Unemployment insurance will enable those made redundant to enter training and prepare to find work again, he added.
Jalisco entrepreneurs welcomed the news, but warned they would oppose any increase in payroll tax (ISN), which currently stands at two percent, to pay for such a policy. Higher taxes would slow growth and competitiveness, private sector representatives told Spanish-language daily Mural. They also noted that when running for governor, Sandoval had promised that the state government would foot the bill for a state unemployment insurance program.The governor provided no details about eligibility for the program, or how much those qualifying would receive and for how long the benefits would run.
The private sector’s concern over the policy was aroused after Labor Secretary Eduardo Almaguer said the government was reviewing whether employers could provide 20 to 30 percent of the funds for the program.