Employment latest publications
In August, 36.6 million new formal jobs were registered according to the Mexican Social Security Institute, with this figure a total of 20.4 million insured workers were registered. From January to August 342 thousand new jobs were created, 46.9% less compared to the same period of the previous year.
August 16, 2019
Mexico | Formal employment deepens its slowdown and occupancy conditions deteriorate
The creation of formal employment deepens its slowdown, in July formal employment grew 2.2% at an annualized rate. Four thousand permanent formal jobs were lost compared to the previous month, a situation that did not happen for a similar month since the crisis of 2009.
A week ago, BBVA Research revised its GDP growth forecast for 2019 upward one tenth to 2.3%, twice as much as in the eurozone. Days later, the IMF did the same and its forecast was also raised to 2.3%.
The favorable seasonality contributed to an increase in employment of 333,800 people in the 2Q19 (2.4% a/a), less than expected. Active population surprised positively, so that the unemployment rate only decreased 7 tenths to 14.0%. Excluding seasonal factors, employment grew 0.3% t/t
According to the IMSS data from May to June, 20,368,666 formal jobs were registered, that is, 14.2 thousand less jobs compared to the previous month, this job loss is mainly due to the reduction of more than 57 thousand temporary jobs.
For several months, we have seen with concern a deterioration in the labor market that has been reflected in a higher unemployment rate, less job creation and/or a change in workers seeking employment, mainly.
Fewer formal jobs are currently being created in the country than in recent years —and that's worrying. The growth rate of formal employment positions had remained above 4% in recent years. However, it fell to 2.5% in May.
Recently, the OECD (Organisation for Economic Co-operation and Development) and the Fundación Santillana presented the “OECD Skills Strategy 2019” report, drafted under the supervision of Montserrat Gomendio, Head of the OECD's Centre for Skills.