Mexico | Job creation in July confirms expectations of a weaker year-end…

Formal employment grew by 2.0% year-on-year in July, similar to the previous month but 0.2 percentage points below the forecast. A moderate improvement is expected in the coming months. Permanent employment has shown resilience, with 322 thousand new positions this year.

Key points

• Key points:
• Temporary employment has lost 23.8 thousand jobs in July, accumulating an annual loss of 14 thousand positions.
• The trade and services sector significantly contributed to the annual employment growth, accounting for 1.2 percentage points of the total 2.0% increase. The manufacturing sector avoided a more significant slowdown, with an annual growth of 0.3%.
• The agricultural sector has experienced eleven consecutive months of negative growth, with a decline of 3.3% in July. In contrast, the construction sector showed an annual growth of 3.0%, halting its slowdown.
• Tabasco has experienced eight months of negative annual employment growth, with a decline of (-)10.7% in July. The lack of reactivation in public works suggests that this negative trend may continue.
• Real wages have slowed down since October 2023, dropping to 3.9% in July. The wage mass has also decreased, with an annual variation of 6.0%. Despite being above the historical average, the slowdown is evident.

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