Mexico | Further dynamism of formal employment, probably driven by outsourcing reform

Summary

2021 is shaping up to be historic in formal job creation, but risks persist. Forward data of September would point to a job creation unprecedented in the last 24 years.

Key points

• Key points:
• Labor informality is the winner in the recovery of employment, which continues in August at higher levels in its annual comparison versus the pandemic level
• The outsourcing reform has encouraged permanent employment, which implies higher job stability in the short term and will improve retirement conditions in the long term
• October and November are historically months with high levels of job creation, so the acceleration in employment is expected to continue
• Unsurprisingly, we are closer to the pre-pandemic level of employment. We still expect a negative adjustment in December; however, the reform to eliminate outsourcing could counteract the adjustment

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