Unemployment in September: The Lowest Job Creation in 10 Years

13:06 07/10/2024 - PesoMXN.com

In September of this year, there were 90,968 formal jobs created, representing a 31.3% decrease compared to the same month in 2023, which saw 132,558 new positions. Of the new jobs created, 86,558 are permanent and 4,410 are temporary. According to the IMSS, this figure marks a historic low for the month of September in the last decade, as it hasn’t been this low since 2014; even during the pandemic year, more jobs were generated.

The lowest figure prior to this year was in 2020, when 113,850 jobs were created, while the peak was reached a year later with 174,096 permanent jobs. In terms of monthly growth, September of this year recorded a rate of 0.4%. Reviewing the period from January to September 2024, a total of 456,417 formal jobs have been recorded, signifying a drop of 39.6% compared to the same period last year. Over the past 12 months, there has been a growth of 351,370 jobs, equivalent to an annual rate of 1.6%. The sectors that have grown the most are transportation and communications with a rate of 5.4%, retail with 3.2%, and social and community services with 2.3%. In terms of federal entities, Chiapas, Hidalgo, and the State of Mexico have had annual increases exceeding 5%. As of September 30, 2024, there are 22,480,803 jobs registered with the IMSS, of which 86.6% are permanent and 13.4% are temporary.

This labor outlook reflects the economic turbulence the country is experiencing. The drop in job creation could indicate a contraction in business investment and a stagnation in economic growth. It is essential for public policies to focus on fostering a favorable environment for investment, as greater job creation not only improves the quality of life for citizens but also boosts consumption and, consequently, the economy as a whole.