Mexico | Job creation plummets in November…

Summary

... with only 24.7 thousand new jobs, the lowest level in two decades, with an annual growth of 1.0%. The weakness in employment, expected by the end of the year, has been confirmed by the results, specifically in November, which recorded the second-lowest job creation since 1997.

Key points

• Key points:
• Formal employment grew by 1.0% in November, which fell short of expectations. The weakness in employment is partly attributed to factors such as judicial reform and the uncertainty caused by the U.S. electoral process, which could continue to affect job creation negatively.
• The slowdown in public investment in infrastructure has sharply affected the construction sector, which has been continuously contracting.
• The manufacturing sector, which is key to employment in the country, has stagnated. Its recovery will largely depend on revitalizing the industry in the United States. However, internal and external factors could also limit its growth.
• Permanent employment has been the main driver of job creation this year, accounting for 97.5% of all positions generated. In November, permanent employment grew by 1.7% year-on-year, surpassing the national average growth.
• States like the Estado de México and Nuevo León have led job creation, with cumulative growth of 6.5% and 6.0%, respectively. However, other states like Tabasco have faced significant declines, with an annual job loss of 11.7% in November, reflecting a disparity in regional employment dynamics.

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