June job losses erase labor market gains

Mexico City. Job losses in industry and agriculture in June wiped out the cumulative job creation seen in the first five months of 2024, according to figures from the National Institute of Statistics and Geography (INEGI).

According to the National Survey of Occupation and Employment (ENOE), the employed population in the country amounted to 58.95 million people at the end of last June, a figure that compares unfavorably with the 59.15 million who had employment in the formal or informal market in December 2023 (that is, 196,429 jobs disappeared in the year, most of them women).

By May 2024, the ENOE, published by Inegi, estimated that 667,433 jobs had been created compared to December 2023. However, the loss of 863,862 jobs last June erased job creation in the first half of 2024.

Female employment was the most affected during the first six months of 2024, as 267,715 jobs were lost; while 71,286 jobs were created for men.

In the first half of the year, industry lost 328,784 workers; construction was the hardest hit, with 227,149 employees; manufacturing saw a reduction of 166,731 jobs. In the agricultural sector, 73,174 jobs were lost. Overall, the 229,350 jobs created in the first half of the year were unable to offset the losses in the other two industries.

Following the June 2 elections in Mexico, 215,685 formal jobs were eliminated and informal sector jobs increased by 19,256 during the first half of this year. As a result, the informality rate dropped to 53.8 percent, compared to 54.4 percent the previous year.

Precarious work is on the rise

According to ENOE, jobs with incomes up to one minimum wage increased by 3.28 million at the end of June compared to December of last year. Meanwhile, those paying from more than one minimum wage to two decreased to 2.04 million; those paying up to three minimum wages fell by 859,495 and the number of workers who received no income increased by 127,510.

Data from Inegi showed an increase in the number of people working more than 48 hours a week: in the period from January to June, the number rose to 710,560. The number of those working 15 to 34 hours increased by 98,000 jobs, and those working less than 15 hours by 44,428.

Meanwhile, the unemployed population was 1.68 million people in June, an increase of 95,131 workers compared to December 2023. With this, the unemployment rate stood at 2.78 percent.

Although Mexico’s economic activity has shown more moderate growth in the last three quarters, job creation could resume, albeit at a more moderate pace, economic analysts predict.