Mexico | Employment growth moderates at the year's start, and the slowdown continues...

Summary

Formal employment added 109 thousand new jobs in January, 2.4% less than in 2023, with a marked slowdown in manufacturing and services. Real wage increased 5.6% YoY (15.4% above pre-pandemic), and the total wage bill grew 8.8% YoY (23.9% above pre-pandemic).

Key points

• Key points:
• Permanent employment drives the gain of the year-on-year growth, while temporary employment shows greater dynamism at the beginning of the year.
• While manufacturing shows a positive monthly variation, job creation in this sector has slowed down in the long term.
• Quintana Roo stands out with the highest monthly growth in January, possibly due to tourism; however, Tabasco and Guerrero experienced job losses compared to December 2022.
• Real wages show resilience despite the slowdown in employment, likely driven by wage negotiations at the beginning of the year.
• The slowdown in job creation, especially in the manufacturing sector, and regional inequality pose significant challenges for the labor market.

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