Mexico | Formal employment does not change trend in October, worsens outlook

Summary

The weakness in employment, observed since the beginning of the year, has intensified more than expected due to factors such as the closure of federal infrastructure projects and political and economic uncertainty. In October, formal employment grew by 1.4%, falling 0.3 percentage points short of expectations.

Key points

• Key points:
• In October, 138K new formal jobs were created, 47K more than in September, confirming that it gained some traction but not enough to reverse the downward trend.
• Permanent employment contributed 1.7 percentage points to the annual growth in October, while temporary employment registered a negative contribution of (-)0.3 percentage points. However, it accumulated a positive balance of 20K jobs so far this year.
• The construction sector has experienced a constant slowdown, recording a 2.5% contraction in October. Due to seasonal factors, this trend is expected to continue.
• The agricultural sector continues to decline, with a 2.8% drop in October. This marks 14 consecutive months of negative growth and more than 115K jobs lost since February 2022.
• While the tertiary sector remains the main driver of employment growth, the State of Mexico led job gains with a 5.3% annual growth in October.

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