Mexico recorded during 2019 the worst job creation in a decade

[Inkriql]

The creation of formal employment in Mexico during 2019 surpassed just 342,000 jobs, the Mexican Social Security Institute (IMSS reported on Sunday, of which more than 95% of the jobs are permanent), which meant the worst job creation in one of each.

These data contrast with the creation of jobs in 2018. At that time almost 661,000 places were obtained. This year's creation is the worst since 2009, when the financial and economic crisis that stagnated all the world's economies occurred.

These numbers were driven, according to IMSS, by the communications and transportation sector, with 5.6%, commerce with 2.4% and services for companies with another 2.4 percent. The states with the highest annual membership increase are Nayarit, Campeche and Querétaro, with percentages greater than 5 percent.

They also stressed that the base salary for contributions of workers insured to IMSS reached an amount of 378 pesos, which represents a nominal annual increase of 6.7%, the highest recorded for a month of December of the last decade. In addition, the base contribution salary registered nominal annual growth of over 6% for the twelfth consecutive month.

The Institute also provides social security to about 1.3 million people, including the more than 814,000 participants of the Youth Building Future Program, a job training grant for young people who do not study or work.

 

In December, 15,193 people joined the Pilot Program of Household Workers, with an average monthly salary of 4,708 pesos. The IMSS also reported that in 2019 there was an annual growth of 1.7% in the pattern sector, with a total of 117,463 posts in the Institute of this type.

Already last December it had been announced that Mexico's economic activity contracted 0.5% in October, compared to the previous month, in seasonally adjusted terms at the beginning of the fourth quarter, accentuating the stagnation in which the second year has been maintained this year Latin American economy.

The fall in the General Index of Economic Activity (IGAE) equaled a contraction of 0.5% recorded in March and is the third negative reading in four months, according to data from the National Institute of Statistics and Geography (INEGI).
(Photo: Cuartoscuro)
(Photo: Cuartoscuro)

By large groups of activities, primary schools decreased 1.6%, secondary schools decreased 1.1% and tertiary schools decreased 0.1%, during October compared to the previous month, the institute said. "We started the quarter badly, since the IGAE decreases -0.5% in October to be -0.7% below its level last year," central bank deputy governor Jonathan Heath wrote on his Twitter account.

To this is added that the Mexican industry dragged 14 months of recession and since the second quarter of 2018 began a deceleration process “that did not have an adequate diagnosis”, warned just this week a study of the Institute for Industrial Development and Economic Growth (IDIC).

The report, published in La Voz de la Industria, indicates the weakening of manufactures as the main cause of the phenomenon, since only three of its components show growth of more than 1% until November: electrical accessories and appliances (1.7%), food (2.8%) and petroleum products (9.9%).