Mexico’s economy is strong, and hiring is expected to remain robust in the final quarter of 2023, according to a survey by staffing company ManpowerGroup. The survey found that 48% of employers in Mexico plan to hire more workers in Q4, while only 12% plan to reduce their workforces.
The IT and energy sectors are expected to lead the way in hiring in Q4, with net employment outlooks of 53% and 49%, respectively. Other sectors with strong hiring outlooks include life sciences and health (44%), retail and services (40%), and manufacturing (36%).
The survey also found that hiring intentions vary depending on the size of the employer. Large companies and organizations have the strongest hiring outlook with a net score of 44%, while the percentages for medium, small, and very small businesses are 36%, 29%, and 27%, respectively.
With unemployment at record low levels in Mexico, companies will need to lure workers away from their current jobs in order to fill open positions. However, given that many companies are looking to hire more staff, ManpowerGroup believes that the total number of formal sector workers will reach a new high of over 22 million by the end of the year.
The U.S.-based staffing firm anticipates that a net total of between 700,000 and 750,000 new formal sector jobs will have been created in Mexico by the close of 2023. Almost 624,000 new jobs were added between January and August, according to the Mexican Social Security Institute, lifting the total number of formal sector employees to just under 22 million.
ManpowerGroup’s general director for Mexico, the Caribbean, and Central America, Alberto Alesi, said there are reasons to be optimistic about future employment prospects in Mexico due to the growing nearshoring phenomenon, in which foreign companies establish operations here to be close to the United States market and to take advantage of a range of other benefits Mexico offers such as affordable labor costs.
“Many foreign companies that have decided to nearshore to Mexico will set themselves up in the country in 2024 and 2025,” Alesi said.