Mexico | Job creation through August: one of the lowest in 14 years

Summary

Employment continues to slow down, with minimal monthly increases. According to the IMSS, formal employment grew by 1.8% annually in August, 0.2 points less than in June and July. Seasonally adjusted job creation has shown three months of 0.1% variations, reflecting weakness in annual variations.

Key points

• Key points:
• In August, 58,000 new jobs were created, bringing the total to 365,000 this year, 41.9% less than the average of the last three years.
• The trade and services sectors accounted for the most growth, with annual variations of 3.2% and 2.2%, respectively.
• Manufacturing is stagnant, with an annual growth of just 0.1% and a loss of 7,000 jobs in August. Employment in the construction sector grew by 1.1% annually, though it has declined compared to the average of previous years.
• By state, the deterioration of employment in Tabasco continues, with an annual drop of 11.3% in August and an accumulated decrease of 7.9% in the year.
• In August, real wages grew by 4.5% year-on-year, driven by strong inflation results, but the real wage bill only increased by 6.4% due to low employment growth.

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