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Job losses in Mexico will reportedly reach high figures this December amid the global coronavirus crisis.

Reported figures say an additional 300,000 jobs could be lost in Mexico before the end of the year.

However, since there were less new hirings in 2020 than 2019 due to the covid pandemic, there will subsequently be fewer jobs lost this year than the last.

The Mexican Institute of Social Security (IMSS) reported that 382,210 jobs were lost in December of 2019.

“That is why we estimate 25 percent fewer jobs lost this year,” said Héctor Márquez, president of the Mexican Association of Human Capital Companies (AMECH), in an interview with El Financiero. The cyclical nature of employment contracts also contributes to end of the year layoffs, said Márquez.

The estimated number of job losses in 2020 is actually the lowest it has been since 2014, when there were just over 235,000 layoffs. Every year since, the number of December firings has exceeded 300,000.

“If we look at the figures from the mid-1990s to now, even before outsourcing, December has always been a month where companies make adjustments in the employment levels …There are seasonal labor hiring practices that are adjusted at the end of the yea,r” said José Luis de la Cruz, general director of the Institute for Industrial Development and Economic Growth (IDIC).

According to experts consulted by El Financiero, the main areas of job loss will be in the manufacturing, tourism, retail, sales, entertainment, restaurant and construction industries.

Since employment rates increased in Mexico during October and November, hopefully job growth will probably get back on track in 2021 after all December’s anticipated layoffs.

…Dec. 17, 2020

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