In August 2024, Mexico added just 58,047 jobs, the lowest August increase since President López Obrador’s 2019 inauguration.
This figure captures the essence of the economic challenges that have permeated the nation.
Released by IMSS, the data reveals August’s job creation was half that of the previous year, indicating a sharp decline.
Compared to July, employment grew by just 0.3%, and the year-over-year increase stood at 1.8%.
These modest gains mirror the general economic climate, as the country’s GDP saw a growth of only 1.4% in the first half of the year.
Significant employment drops characterized eight Mexican states, including Sinaloa and Sonora.
The manufacturing sector, vital for the economy, showed almost no growth. Tabasco experienced the most severe annual drop, with an 11.3% decline in job creation.
On a brighter note, Chiapas, Hidalgo, and the State of Mexico experienced higher growth rates, recording increases of 6.2%, 5.6%, and 5% respectively.
Different sectors showed varied performance. The agricultural sector shrank by 3.3% over the year. Mining and manufacturing barely improved, each growing by only 0.1%.
However, the transportation and communications sector surged by 5.2% annually, with trade and social services following with gains of 3.2% and 2.6%.
August Woes: Mexico Sees Lowest Job Growth Since 2019
From January through August 2024, Mexico saw the creation of 365,449 jobs. Notably, permanent positions rose by 2% during this period.
Despite this, the Banco de México (Banxico) lowered its annual job growth forecast to between 410,000 and 550,000, a cut from earlier projections.
As of August 31, 2024, the total number of registered jobs stood at 22,389,835, according to the IMSS.
This statistic underscores the ongoing economic difficulties facing Mexico, reminding us of the cautious yet hopeful outlook for the nation’s employment landscape.
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