Mexico’s economy grows, but job creation ‘missing’

Mexico’s economy grows, but job creation ‘missing’ – Business –
“But with all of the good news on the real economy front, there is one missing piece: formal job creation,” Luis Arcentales, a vice president with Morgan Stanley, said this week in a research report.
Many new jobs are only temporary or are informal positions such as street vendors, Mr. Arcentales said. Meanwhile, Mexico’s labor force is growing faster than the economy is creating formal jobs.
Mr. Arcentales blamed foreign competition — especially pressure from China — and a rigid labor market — including high severance and hiring costs — for dampening the labor market.

The median wage in Mexico is a little under $2 an hour, while a foreign-born Mexican worker in the United States earns $9 to $10 an hour.

This ties back to an earlier post “Make Mexico Rich” to solve the Border problem.

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