Mexico | Formal employment collapses in April, two years of job creation lost

Summary

Measures to support employment considering the paralysis and economic slowdown have been insufficient to halt the destruction of formal jobs, resulting in an unprecedented contraction in the formal employment. There is a high risk that job destruction became structural as more companies close permanently.

Key points

• Key points:
• Accumulated loss of 494 thousand jobs in the first four months of the year
• Job destruction may reach 1.5 million formal jobs as slowdown deepens
• Moderate job recovery expected in 2021
• Construction has been one of the most affected economic sectors, in April it presented an annualized rate of (-)15.0%
• Tourism-related entities with the sharpest falls of formal employment: Quintana Roo (-18.1%), Baja California Sur (-10.7%) y Guerrero (-6.3%)

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