Mixed Results in Mexican Economic Recovery

Mexico’s economic activity showed mixed results during Dec. 2021, reported the National Institute of Statistics and Geography (INEGI). Employment numbers are up and some industries show recovery signs.

“In Dec. 2021, the results of the Sectoral Breakdown of the Timely Indicator of Economic Activity (IOAE) indicate a mixed recovery of the Mexican economy in terms of levels of activity and employment, compared to the levels that were presented in December of the previous year,” reads INEGI’s press release.

Mexico recorded a massive growth in employment, creating 994,506 jobs from Dec. 2020 to Dec. 2021. Most of the new jobs were concentrated in economic areas that also showed significant recovery. The film, video and sound industry grew a whopping 24.4 percent, recording the largest annual increase. The agricultural and forestry industry followed with a 14.4 percent annual recovery from Dec. 2020. Manufacture of clothing also grew 8.4 percent year-to-year, the biggest increase among secondary activities.

“In terms of formal jobs, food and beverage preparation services show the largest estimated increase in jobs (106,061) in their annual comparison, followed by the manufacture of transportation equipment (99,066) and professional, scientific and technical services (67,897). These activities recovered part of dynamism lost during the height of the health contingency,” explains INEGI’s report.

The most significant employment growth was seen among jobs that pay at least three minimum wages. INEGI claims that 25 percent of jobs were created thanks to the dynamism of large companies. On a national scale, Quintana Roo led the country by recording a 6.7 percent annual employment growth, followed by Baja California Sur with 5.6 percent and Coahuila and Queretaro in third place with 5.2 percent. 

“INEGI presents the results of an experimental statistics exercise for the Sectoral Disaggregation of the Timely Indicator of Economic Activity (IOAE), from its link with a model of accounting multipliers based on the Matrix of Social Accounting of Mexico (MCSM). In this way, specific production-employment elasticities were estimated for each activity, that is, a ratio that shows the percentage changes in employment associated with percentage changes in the gross value of production in the sector,” said INEGI.