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Employment falls due to lower temporary hiring

by Yucatan Times
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Last month, the generation of formal jobs in the country slowed down, mainly due to the lower dynamism of temporary positions, which are normally created to cover the needs of companies during the year-end holidays.

Last November, 101,275 jobs were created in the formal sector of the economy, 38.8% less than the 165,463 jobs created a year earlier, according to the number of workers registered with the Mexican Social Security Institute (IMSS).

By type of positions, 80,208 permanent jobs were created, 33.9% lower than the figure reported in November of last year, as well as 21,67 temporary jobs, which meant an annual contraction of 52.2%.

The generation of temporary jobs in November is the second lowest in 14 years for that month, partly as a result of the elimination of subcontracting.

Groups of temporary employment companies operating in the country have expressed the need to promote temporary employment with social security.

The Mexican Association of Human Capital Companies (AMECH) stated, “With the objective of hiring within formality the necessary personnel in the face of sales or production peaks, as well as to combat informal hiring methods [honorary, assimilated, unions and cooperatives]”.

Due to the lower dynamism of the recovery of the formal labor market, the accumulated job creation from January to November of this year was of one million 98.5 thousand positions, 5.3% lower than the one million 159.3 thousand positions reported in the same period of the previous year.

TYT Newsroom

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