Mexico | Employment resumes growth in April but will continue to decelerate...

Summary

The employment resumes growth in April (2.5% year-on-year); this rebound in employment is explained by the negative impact of the previous month's Easter week. A change in the employment creation trend is not anticipated but rather seen as a temporary adjustment

Key points

• Key points:
• Despite this growth, it is unlikely to represent a significant shift in the overall employment trend, so a gradual deceleration is expected to continue.
• Permanent employment was the main growth driver in April, contributing 2.16 percentage points to the year-on-year growth. In contrast, temporary employment experienced a slight decrease compared to March.
• Construction, commerce, services, and transportation made the largest contribution to employment in April (58,000). Construction also rebounded, which is positive considering its declining trend in previous months.
• Mexico City and the State of Mexico led in net job creation, while Tabasco faced a negative dynamic due to the loss of jobs associated with the finalization of infrastructure projects.
• Despite the expectation of a slowdown in employment, real wages and the wage bill are expected to continue to show resilience.

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