Tellimer
Macro Analysis / Global

Mexico: Employment affiliated to IMSS begins its recovery in August

  • On Saturday, the National Social Security Institute (IMSS) released its employment figures for August
  • 92,390 jobs were created, with business affiliation figures also up. Wages were lower in real terms on higher inflation
  • Going forward, job gains could extend in the short-term given the reopening of more businesses, especially in services
  • On Saturday, the National Social Security Institute (IMSS) released its employment figures for August 

  • During the month, 92,390 jobs were created of persons affiliated to the institute, breaking with five consecutives of declines. Still, accumulated losses year-to-date stand at 833.1 thousand positions. As a result, total workers climbed back to 19.6 million 

  • Business affiliation continues to improve, with 1,027 companies added to the list, with three consecutive months higher. In our opinion, this is positive and consistent with signs of higher economic activity in recent months 

  • Average daily wages came in at $404.1 (US$18.1), increasing 2.3% y/y in real terms, lower than in July (2.7%), explained by an additional pick-up in inflation 

  • Job gains could extend in the short-term given the reopening of more businesses, especially in services. However, latest signs on activity have been mixed, possibly limiting a strong rebound

Jobs affiliated to IMSS improved in August. On Saturday, the National Social Security Institute (IMSS in Spanish) released its employment report for the eighth month of the year. Within, we highlight the creation of 92,390 jobs affiliated to the institute, breaking with five months of declines that started in March, as the COVID-19 induced lockdown started (see chart below, left). This is finally starting to be more consistent both with the overall trend of the economy, which showed signs of a recovery since June, as well as with INEGI’s broader employment report, which has shown improvements since the same month.  According to IMSS’s figures, the accumulated decline year-to-date stands at 833.1 thousand. However, since March, losses amount to little over 1 million. As a result, total IMSS affiliated employees stood at 19.6 million, level similar to the one seen in early 2018 (chart below, right).


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