Mexico | Labor market with considerable progress on the path to recovery

Participation in the labor market practically recovered; the return to classes on-site will improve the recovery of labor participation. Formal job creation surprises in July; additional, the removal of outsourcing allows the recovery and exceeds permanent employment levels prior to the pandemic.

Key points

• Key points:
• Total and urban labor informality rate exceeds pre-pandemic levels
• In July, underemployment slows the declining trend and remains at high levels compared to the historical data
• Unemployment rebounds at the urban level in its monthly comparison, but with a considerable decrease compared to the previous year
• Transitions of workers due to separation and hiring equivalent to 11.3% of total formal employment
• The adjustments derived from the removal of subcontracting without negative impact on wage levels in aggregate terms

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