Job Creation in Mexico Slows Down

Despite a significant increase in job creation in Mexico, there is a deceleration according to a report from the IMSS (Mexican Social Security Institute).

The Mexican Social Security Institute reported that in the last 12 months, the creation of formal job positions amounted to 685,364.

The numbers indicate that this is the lowest rate since June 2021. During the first 10 months of the year, it fell by 6.8% to 929,794 new jobs in Mexico.

Formal employment continues to grow at a notable pace but also shows signs of fatigue.

The creation of new jobs in Mexico is an undeniable sign of economic growth.

In October, the number of job registrations with the Mexican Social Security Institute (IMSS) dropped by 16.6% to 173,257. This was revealed in the monthly report released by the organization this Monday.

The economy continues to generate jobs but at a slower pace. With the data from October, the new employment in the last 12 months amounted to 685,364 positions, which is the lowest number since June 2021 (675,521).

From another perspective, this variable has also shown an uninterrupted decline since its last peak in May, with the generation of 854,422 jobs in the previous 12 months.

When presenting the monthly report, the Institute highlighted that from January to October of this year, 929,794 jobs were created, whereas in 2022, the creation of job positions was 997,178, implying a 6.8% decrease in 2023.

Currently, the number of insured workers with the IMSS stands at 22.3 million.

Job Creation in Mexico

It’s worth noting that in the eighth month of the year, 140,489 workers were added to permanent employment with indefinite contracts, accounting for 81% of the total job creation.

Meanwhile, the segment of temporary job positions added 32,768 workers.

Gabriela Siller Pagaza, Director of Economic Analysis at Grupo Financiero BASE, commented that while in the first 10 months of the year, the job creation reached 929,794 positions, “the accumulated total is 6.76% or 67,384 positions below job creation in the same period in 2022.” Furthermore, she anticipates that “152,637 job positions will be created in November and 346,272 job positions will be destroyed in December, resulting in the creation of 736,158 jobs throughout 2023.”

Héctor Márquez, President of the Human Capital Committee of the Employers’ Confederation of the Mexican Republic (Coparmex), emphasized that “there are two aspects worth reviewing regarding formal employment.

The first has to do with the year-end closure when, seasonally, a decrease in job positions is expected, possibly reaching up to 300,000. The second aspect to review is the average salary, which has been recovering in recent years.”

In this regard, the base contribution salary for jobs affiliated with the Institute reached 531.50 pesos.

“This salary represents a nominal increase of 10.8%, the second-highest recorded in two decades, only considering the months of October, and since January 2019, the base contribution salary has maintained annual nominal increases equal to or exceeding 6 percent,” Márquez pointed out.

Also read: Opposition Criticizes the budget cuts to the proposals Electoral Court and Other Institutions.

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