Mexico | Employment slows down in June, but remains strong

In June, formal employment slowdown, reaching one of its lowest levels since 1998. Despite this, in cumulative figures from January to June, it represented a growth of 2.4%, a 0.2pp increase compared to the previous year, indicating strength in the labor market.

Key points

• Key points:
• The construction sector showcased one of the highest monthly growth rates (1.4%) and achieved a year-on-year growth above 9% for the second consecutive month, demonstrating its strong momentum.
• Manufacturing demonstrates remarkable resilience with a notable year-on-year growth rate of 2.6%. This growth positions it as the sector with the highest cumulative employment growth since the pandemic, reaching a 20.3% increase.
• Mexico City and Tamaulipas are the only states that are below their pre-pandemic level (-0.3% and -0.4% respectively)
• The evolution of inflation has supported the average real wage and the wage bill, enabling them to remain resilient despite experiencing a slight slowdown of -0.2% and -0.1% month-on-month, respectively. Nonetheless, both indicators continue to demonstrate strength.
• Employment has the potential to outperform the previous year if the risks associated with the economic environment in the United States subside.

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