Concern in the Private Sector: Only 18% of Required Formal Jobs Created in 2024
The low generation of formal jobs in 2024 has raised concerns among business owners, who are demanding that the federal government adopt public policies that promote job creation. Coparmex emphasized that 1.2 million new formal jobs are needed each year to meet the labor demand from young people entering the job market.
This indicates that last year, only 18% of the necessary formal jobs were created (213,993 positions). This business organization highlighted that the growth of formal employment in 2024 was merely 1% annually, the lowest figure since 2020, when the Covid-19 pandemic led to a contraction of the labor market. Additionally, this figure is well below the average of the last ten years, which exceeds 519,000 jobs per year. The largest impact on formal employment in 2024 occurred in December, with the loss of 405,259 positions. "We acknowledge that this drop has a seasonal component due to the end of temporary contracts and the usual decrease in economic activity at the year’s end," commented Coparmex. However, the size of this figure illustrates an economic environment that has weakened job creation throughout 2024. The creation of the 213,993 jobs in 2024 represents a 67% decline compared to 2023. Business owners pointed out that this decrease in employment is not an isolated phenomenon but a reflection of an economic slowdown that particularly affects micro, small, and medium-sized enterprises (MSMEs). These businesses are facing rising labor and operational costs, as well as a lack of support and incentives from the government. "These circumstances restrict their ability to maintain or increase their workforce, which directly impacts the generation of formal jobs," explained Coparmex. Furthermore, legal uncertainty, rising insecurity, and contradictory signals in economic policy, such as the elimination of autonomous agencies, create a less favorable environment for investment and economic growth, in addition to being structural barriers that hinder job creation and weaken private sector confidence, a crucial element for revitalizing the national economy. Business owners believe it is possible to reverse the trend of low formal job creation as long as public policies that promote this are implemented, suggesting prioritizing formalization through competitive fiscal schemes and ensuring an environment of security and legal certainty that encourages both domestic and international investment.
It is essential for the government to take urgent measures to address the employment crisis in Mexico. Promoting a conducive environment for MSMEs, along with building investor confidence, are crucial steps to ensure sustainable and dynamic economic growth. A healthy economy not only creates jobs but also improves the quality of life for citizens and reduces poverty. Strategic decisions in labor and fiscal policies will be decisive to get the country's job market back on track.
