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Hiring plans ‘relatively stable’ in Mexico; concerns linger over election, NAFTA and skill shortage

June 13, 2018

Mexican employers continue to report steady hiring plans for the upcoming quarter, according to a survey by ManpowerGroup Inc. (NYSE: MAN). Payrolls are expected to increase by varying margins in all seven regions and all seven industry sectors.

The survey found 14% of employers in Mexico forecast an increase in staffing levels in the upcoming quarter; 3% anticipate a decrease, 82% expect no change and 1% don’t know their plans. This yields a net employment outlook of 11% on a seasonally adjusted basis — a decrease of three percentage points compared to the similar survey conducted last year.

“The country faces issues such as presidential elections and the renegotiation of NAFTA, probably this is why the outlook for the third quarter is up 11%, remaining relatively stable when compared to the previous quarter,” said Martha Barroso, director of strategic and process management for ManpowerGroup.

Barroso stated that employer confidence can also be affected by the potential impact of the talent shortage that companies are experiencing. “Many employers understand that the digital age will require new skills,” she said. “And the lack of these skills will severely impact a company’s ability to grow.”

Employers in the transport and communication sector and the mining and extraction sector report the most optimistic hiring intentions for the third quarter. The net employment outlook, seasonally adjusted, by sector:

  • Transport and communication: up 15%
  • Mining and extraction: up 15%
  • Manufacturing: up 13%
  • Services: up 11%
  • Agriculture and fishing: up 9%
  • Commerce: up 9%
  • Construction: up 5%

ManpowerGroup’s employment outlook survey data include responses from 4,804 employers in Mexico.