View from the Ground
Driven by continued strength and confidence in investment for private industry and ongoing structural reforms, the Mexican economy remained stable and is expected to grow despite local political changes and uncertain trade relations with the US. Mexico anticipates several challenges over the coming years, including: reducing the high levels of informal labour, currently 60% of Mexicans; the slowdown in consumer trends; and the gap in the labour participation rate between women and men which is still high, indicating that there are substantial opportunities in terms of improving diversity and inclusion. The digital revolution is transforming Mexico’s labour market, despite the major structural challenges the country is facing. Sectors relating to STEM, automation and Industry 5.0, are concentrating on attracting in-demand skilled professionals to successfully complete their expansion plans. Broadening employee training to upskill the Mexican workforce is crucial in order to increase the competitiveness of the country in the near future.
Axel Dono, Managing Director, Hays Mexico
Key Skills in Demand
- Finance/Accounting Managers
- Sales/Product Managers – Life Sciences
- SQA Managers/Quality – Manufacturing
- Developers (Back End and Front End)
- eCommerce Managers/Directors
Following the uncertainty created by the renegotiation of NAFTA, economic growth in Mexico slowed marginally to around 2% in 2018, down from 2.2% the previous year.
The economic growth rate is expected to average 2.1% annually across the next five years, as the economy reaps the fruits of the structural reforms of ‘Pacto por Mexico’. These reforms included breaking state monopolies and promoting competition in the telecommunications sector.
Unemployment fell slightly in 2018, standing at 3.5% in the last quarter, while real wages are starting to grow. Looking ahead, the labour market challenges that Mexico faces include reducing the size of the informal labour market (in which employees work for unregistered firms) and increasing the female labour force participation rate, which is 34 percentage points lower than the corresponding rate for men (43.5% versus 77.4%, respectively).