Mexico records its weakest job creation in a decade
Job creation in Mexico during 2019 grew at the slowest rate recorded since 2009, figures released by the Mexican Social Security Institute (IMSS) have shown. Hit by a struggling economy, just 342,077 jobs were created, IMSS reported.
The number of new jobs registered with IMSS fell by 48 percent while the national economy shrank 5.3 percent. Almost 172,000 jobs were lost.
In December 2019, the number of jobs created fell 0.8 percent compared to the same period in the previous year. December is usually the month that reports the most jobs lost in Mexico.
Last year, construction was the sector hit the hardest by the economic slowdown. The communications and transport sectors (5.6 percent), commerce (2.4 percent) and service companies (2.4 percent) registered the highest job creation growth.
Nayarit, Campeche and Querétaro were among the states that created most jobs.
IMSS also reported that around 56 percent of Mexican workers are part of the informal economy.
Economic growth and job creation are always linked. In 2013, after one full year in power, Enrique Peña Nieto’s administration recorded a 1.3 percent increase in annual GDP, compared to the 0 percent of President López Obrador’s first full year.
The forecast for 2020 is concerning. The World Bank just cut its growth expectation for Mexico from 2 percent to 1.2 percent. If the economy is not reactivated soon, poor employment growth figures are expected to be repeated in 2020.