Mexico | Employment slows down more than expected at the end of 2023...

In December, a loss of 385 thousand jobs was recorded, marking the strongest seasonal adjustment since 1998. Employment closed the year with an annual growth of 3.0% but was below consensus expectations. The monthly decrease in employment (-)1.7% is primarily attributed to seasonal factors.

Key points

• Key points:
• During 2023, 651 thousand jobs were created, representing a year-on-year growth of 3.0%. Although it exceeds the historical average by 14.5%, it fell below consensus expectations.
• December's downward (-1.7%) is mainly attributed to seasonal factors and job losses in construction and manufacturing (56.9%), emphasizing that Hurricane "Otis" did not significantly impact the overall job loss.
• Key sectors contributing to the annual growth were Commerce (0.8 pp), Services (0.7 pp), and Construction (0.6 pp), accounting for 70% of the growth by year-end.
• Nuevo León, Estado de México, Sonora, and Quintana Roo stood out in employment growth throughout the year.
• Despite high inflation, real wages maintained an annual growth of 5.6%, contributing to an 8.8% increase in the total wage bill.

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