Mexico | The slowdown in formal employment continued in June...

Summary

Despite the slowdown, permanent formal employment has shown constant gains. In June, formal employment had a year-on-year growth of 2.0%, 0.1 percentage points below our forecast, confirming the expected deceleration trend.

Key points

• Key points:
• Temporary employment has experienced four consecutive months of losses, totaling 95,000 fewer jobs.
• Manufacturing continues to slow, with a 0.1% year-on-year decline in June. Commerce and services have been the most dynamic sectors, contributing 0.7 percentage points and 0.4pp to annual employment growth, respectively.
• The agricultural sector has shown the most significant deterioration, with a loss of 1.1% of jobs this year and ten consecutive months of negative annual variations.
• Mexico City, Hidalgo, Quintana Roo, the State of Mexico, and Nuevo León have shown good job creation performance, while Tabasco has recorded significant drops.
• Employment is expected to regain some strength in the third quarter, although with more moderate growth due to lower economic growth expected for the year.

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