Growth in employment in Mexico was the highest in history
Ignacio Teson•Monday, February 26, 2024•1 min read
Growth in employment in Mexico was the highest in history
The growth in employment is linked to the incorporation of 1.2 million people to formal jobs.
In 2023, 66.1% of the employed population in the country had employment, representing the highest figure in history, according to the National Occupation and Employment Survey (ENOE). The year 2023 closed with the highest level of wage workers and was accompanied by an improvement in working conditions.
At the beginning of 2023, 65.1% of the employed population had a formal employment, and throughout the year, this population remained at a level of 65.5 percent. For the October-December period, there was a quarterly growth of 0.6 percentage points, resulting in the best figure since 2005 when the labor market began to be measured through the ENOE.
The level reached is related to a strengthening of subordinate work; this sector led the employment gains last year with a growth of 1.2 million people. In contrast, self-employment and employees contributed only a combined 40,000 employed people.
In total, 2023 saw a growth of 1,054,000 jobs. This is the net balance of the job positions created and the loss of just over 200,000 positions classified as unpaid work.
The job creation was accompanied by a reduction in unemployment. The fourth quarter of 2023 closed with an unemployment rate of 2.7% and an annual decrease of 0.3 percentage points. Among other key indicators of the labor market, the informality rate dropped to its lowest quarterly figure in history. 2023 ended with an informal employment rate of 54.8%.
Last year began with a rate of 55.1% and managed to string together three quarters of declines. Over the past three years, informal employment has only experienced rebounds in three quarters.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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