The economic slowdown in Mexico has had a clear impact on formal employment, according to a recent report from the Mexican Social Security Institute (IMSS). In April, there was a decrease of 47,442 affiliated workers compared to the previous month, confirming the downward trend in employment in the country.
Although on an annual basis the number of workers still shows a slight growth of 0.2%, the short-term situation is concerning. The constant reduction of registered employers in the IMSS, which contracted by 2.5% in April, has begun to impact job creation in various regions of Mexico.
In particular, states like Tabasco and Campeche have experienced the largest drops in employment, with reductions of 8.3% and 5.3% respectively. This is largely attributed to the end of major projects such as the Mayan Train and the Dos Bocas refinery, which has affected the local economy and job creation in those areas.
Additionally, sectors like construction have been the hardest hit, with a drop of 6.5% in employment, while commerce still maintains an annual growth of 2.3%. Despite the decrease in job creation, the average contribution wage has increased by 7.6%, representing a real growth of 3.5%.
Despite this negative outlook, the internal market seems to show some resilience to the current economic slowdown. Although signs of weakening are evident, such as the 4.6% decline in new car sales in April, private consumption still shows some resilience, with a 1.2% increase in February.
However, the prevailing economic uncertainty is creating caution among consumers, which is reflected in a 0.2% retracement in the timely indicator of private consumption in March. Although there is no immediate risk of a financial crisis, these figures illustrate the challenge facing the Mexican economy today.
