In 2024, only 18% of the formal jobs needed were generated; alert to IP

The above means that last year only 18% of this required formal employment was generated (213,993 positions).

The business organization highlighted that the creation of formal employment in 2024 had an annual growth of only 1%, being the lowest figure since 2020, when the Covid-19 pandemic caused a contraction of the labor market.

This figure is also very far from the average of the last 10 years, which exceeds 519,000 jobs annually.

He biggest blow to formal employment in 2024 was December with the loss of 405,259 positions.

“We recognize that this decrease has a seasonal component due to the conclusion of temporary contracts and the lower economic activity typical at the end of the year,” said Coparmex.

However, the magnitude of this figure reflects an economic environment that has weakened job creation throughout 2024.

The generation of 213,993 positions in 2024 meant a drop of 67% compared to 2023.

The businessmen pointed out that the drop in employment is not an isolated phenomenon, but rather the reflection of an economic slowdown that especially affects micro, small and medium-sized businesses (MSMEs).

These companies face higher labor and operating costs, along with a lack of government supports and incentives. “These conditions limit their ability to sustain or expand their workforce, which directly impacts the creation of formal jobs,” Coparmex said.

On the other hand, legal uncertainty, growing insecurity and contradictory signals regarding economic policy, such as the elimination of autonomous organizations, generate an unfavorable environment for investment and economic growth; they are structural barriers that make it difficult to generate employment. and undermine the confidence of the private sector, an essential element to boost the national economy.

Entrepreneurs think that this trend of low generation of formal jobs can be reversed, as long as public policies that encourage it are implemented, which is why they propose prioritizing formalization through competitive tax schemes and guaranteeing an environment of security and legal certainty that promotes national and international investment.