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Mexican Industrial Job Growth Plummets 67% In November
(MENAFN- The Rio Times) The Mexican industrial sector faces a significant slowdown in formal job creation, reflecting broader economic challenges.
Recent data reveals a 67.3% year-over-year decline in November, with only 139,971 new jobs created. This marks the lowest level since 2009, excluding the anomalous pandemic year of 2020.
The Mexican Social Security Institute (IMSS) reports that this decline surpasses the overall 40.2% drop in formal employment creation across all sectors. Industrial jobs now account for just 23% of total new employment, down from 41% in the previous year.
Construction experienced the most severe downturn, with an 89.8% plunge in new hires. This sharp decrease coincides with the completion of major public infrastructure projects.
These include the Maya Train, the Interoceanic Corridor of the Isthmus of Tehuantepec, and the Mexico City-Toluca Interurban Train. Manufacturing also saw a substantial 39.5% decrease in new hires.
However, the extractive and utilities sectors showed modest improvements, though not enough to offset the overall industrial decline. October's Monthly Indicator of Industrial Activity (IMAI) from INEGI further confirms this trend.
Manufacturing growth has slowed to a mere 0.4% year-to-date, compared to 1.8% in the same period last year. Construction growth has also decelerated from 14.7% to 4.6%.
Employment Trends and Economic Outlook
Despite these challenges, the industrial sector remains a crucial employer in Mexico . It accounts for 36% of all formal jobs, with 8.2 million workers.
Manufacturing alone represents 27% of the country's formal employment, surpassing even the business and personal services sector. As of November 30, IMSS reported 22,643,638 formal employees across all sectors.
However, December typically sees seasonal job losses, which have averaged around 300,000 in recent years. This slowdown in industrial employment growth signals potential economic headwinds for Mexico.
In short, it underscores the need for diversification and adaptability in the labor market to maintain economic stability and growth.
Recent data reveals a 67.3% year-over-year decline in November, with only 139,971 new jobs created. This marks the lowest level since 2009, excluding the anomalous pandemic year of 2020.
The Mexican Social Security Institute (IMSS) reports that this decline surpasses the overall 40.2% drop in formal employment creation across all sectors. Industrial jobs now account for just 23% of total new employment, down from 41% in the previous year.
Construction experienced the most severe downturn, with an 89.8% plunge in new hires. This sharp decrease coincides with the completion of major public infrastructure projects.
These include the Maya Train, the Interoceanic Corridor of the Isthmus of Tehuantepec, and the Mexico City-Toluca Interurban Train. Manufacturing also saw a substantial 39.5% decrease in new hires.
However, the extractive and utilities sectors showed modest improvements, though not enough to offset the overall industrial decline. October's Monthly Indicator of Industrial Activity (IMAI) from INEGI further confirms this trend.
Manufacturing growth has slowed to a mere 0.4% year-to-date, compared to 1.8% in the same period last year. Construction growth has also decelerated from 14.7% to 4.6%.
Employment Trends and Economic Outlook
Despite these challenges, the industrial sector remains a crucial employer in Mexico . It accounts for 36% of all formal jobs, with 8.2 million workers.
Manufacturing alone represents 27% of the country's formal employment, surpassing even the business and personal services sector. As of November 30, IMSS reported 22,643,638 formal employees across all sectors.
However, December typically sees seasonal job losses, which have averaged around 300,000 in recent years. This slowdown in industrial employment growth signals potential economic headwinds for Mexico.
In short, it underscores the need for diversification and adaptability in the labor market to maintain economic stability and growth.
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