The Banco Bilbao Vizcaya Argentaria (BBVA) Financial Group forecasts a deceleration in the generation of formal employment in Mexico by the end of 2023, corresponding with anticipated local and US economic slowdowns.
According to a report titled “Employment slows down in June, but remains strong”, formal job growth stood at 2.4 percent in the first half of this year, slightly higher than the same period in 2022.
However, in June alone, there was a minor monthly decline of 0.1 percent in formal jobs, with a net change of 24,000 positions.
The report notes potential economic risks and foresees slower job growth in the coming months, in line with the economic trend.
Temporary gains are expected in the third quarter due to seasonal factors.
BBVA highlights the potential benefit from the relocation of global value chains to Mexico (nearshoring), which could further stimulate job growth.
In 2022, Mexico, Latin America’s second-largest economy, saw a 3.0 percent growth.
The Ministry of Finance predicts that nearshoring could potentially enhance local economic growth by up to 1.2 percentage points over the next four years.