Internal and external factors inhibit quality job creation in Mexico: CEESP

Mexico's economy, the second largest in Latin America, is failing to attract sufficient investment to generate quality employment, according to the Center for Economic Studies of the Private Sector (CEESP).

The CEESP attributes this stagnation to a combination of internal and external pressures. These include weak overall investment, increasing labor costs, and persistent international uncertainty surrounding the T-MEC trade agreement. These factors collectively inhibit the expansion of capital and hinder the creation of higher-quality jobs, thereby slowing economic growth.

The report emphasizes that improving the well-being of Mexican households is directly linked to the sustained creation of quality jobs that offer competitive wages. However, official figures indicate a need for more formal employment opportunities.

Achieving this requires increased investment flows that stimulate productive activity. Current growth expectations remain cautious, with projections suggesting this trend will continue into the second half of the year. Analysts consulted by the Bank of Mexico forecast a GDP growth of 1.1% for the year.

While the Global Economic Activity Indicator (IGAE) showed a monthly increase of 1.4% in April, a subsequent 0.3% decrease in May suggests a lack of clear signs pointing toward a sustainable recovery, according to the CEESP.