Mexico | The weakness of employment is noticeably accentuated in September

Summary

Formal employment grew by 1.6% in September. Despite the increase, the growth was lower than expected, reflecting a more significant slowdown and worsening short- and medium-term employment expectations, influenced by the country's anticipated lower economic growth and uncertainty.

Key points

• Key points:
• Manufacturing, the key to job creation, has grown by only 1.8% so far this year, well below previous years, negatively impacting overall employment.
• Employment in the agricultural sector has declined by (-)6.3% as of September, marking 13 consecutive months of negative annual rates.
• The construction sector lost 16.8K jobs in September; this year, no significant recovery is expected.
• Chiapas, Hidalgo, Estado de Mexico, and Nuevo León stand out for their growth in job creation in 2024.
• The slowdown in formal employment is reflected in wage performance; in September, real wages grew by 4.5% and total wage bill by 6.1%, both below the average rates of 2023.

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