Mexico | Job creation surprises, the highest for a first quarter

Summary

In the first quarter of the year, 423K jobs were created, the best result since 1998, representing a growth of 9.8% QoQ. In March, 136K were created, which is equivalent to a monthly growth of 0.6%, higher than that of the last two years for a similar month (0.4% in 2021 and 0.3% in 2022).

Key points

• Key points:
• Temporary employment has been more dynamic in job creation; 6.5 percentage points of the quarterly growth (9.8%) is explained by these jobs, which has greater volatility in an adverse economic scenario.
• The services (4.5% YoY), commerce (4.4% YoY), and manufacturing (2.4% YoY) sectors, which generate seven out of ten jobs in the country, also performed well in March and together explained 2.6pp of 3.8% year-on-year growth.
• Currently, only Mexico City and Tamaulipas states are below the level of employment prior to the pandemic, (-)1.0% and (-)0.4%, respectively, but they are not far from closing the gap opened by the health contingency.
• Wage negotiations have been fundamental to maintaining the purchasing power of workers' income. The average nominal wage is 32.1% above the pre-pandemic level and 10.0% in real terms.

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