Mexico | Weakness in Formal Employment Persists in September

Summary

Formal employment in Mexico remained stagnant in September, posting a 0.05% monthly and 0.4% annual increase. Weak investment and sluggish consumption continue to constrain job creation, while manufacturing and construction sectors continue to contract.

Key points

• Key points:
• From January and September, 333 thousand formal jobs were created, a figure 57.8% below the average of the last three years and 27% lower than in the same period of 2024. The contraction in gross fixed investment (−7.2%) and the stagnant growth of the IGAE highlight the lack of productive momentum that continues to constrain job creation.
• The manufacturing sector, the main driver of formal employment, has recorded nine consecutive months of negative annual growth, with a 0.2% decline in jobs compared to December 2023, affected by the uncertainty in the trade environment with the United States.
• Despite a modest 0.38% month-on-month gain in September, the construction sector continues to show signs of weakness, with 13 straight months of annual contraction and a total 2.9% decline in jobs since late 2023.
• The services sector is losing momentum; after several months of resilience, it fell 0.44% MoM and grew only 1.0% YoY, well below the 3.4% average observed between 2021 and 2024.
• The real wage rose 3.3% YoY, while the real wage bill increased 3.7% YoY, reflecting reduced purchasing power and the risk that the weakening of household consumption will continue.

Geographies

Topics

Tags