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In February, 176 thousand jobs were created (3.4% YoY), marking the second-highest job creation since 1998. Although this is a significant growth, it aligns with the expected slowdown.
Growth expectations and the macroeconomic environment for 2023 set a less encouraging scenario for job creation in 2023. We expect 527K new jobs to be created by the end of the year, equivalent to a year-on-year growth rate of 2.5%.
Wages in Mexico are low compared to other countries with a similar income level. Most worryingly, wages have fallen, in real terms, over the last 25 years in all income deciles.
In December 2019, the IMSS registered a total of 20.4 million workers. A total of 342 thousand new formal jobs were created in 2019, an average growth of 2.3% in the year. The formal payroll maintained average growth above 5% during the year.
Twenty-five years after the 1994 crisis, the minimum wage will finally regain its real level and even exceed it.
It seems that in the age-old battle between labour and capital the latter has been gaining ground recently. In the majority of advanced economies the share of national income going to wage and salary earners is falling. What is the reason for the fall in labour’s share of income? There are several possible explanations.
