Mexico | Formal employment slows down in April, and job insecurity continues to increase

Summary

The generation of low-paid jobs characterizes the recovery of the labor market. Despite the high inflation levels, real wages and the wage bill maintain positive growth. We expect formal employment to continue posting favorable year-on-year growth rates but with a more moderate increase.

Key points

• Key points:
• Stagnant labor market, without significant growth in labor participation
• Critical occupancy conditions with historical record level. Unfavorable context for family consumption
• The employment level is 1.3 million below the pre-pandemic trend level, and the gap is expected to continue in the medium term
• Dynamic growth of the wage bill, mainly explained by job creation at the beginning of the year

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