75% of young mexicans will be left wanting to get a formal work; locating between unemployment and informality, revealed the global human capital firm ManpowerGroup.
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The General Director of ManpowerGroup for Mexico, the Caribbean and Central America, Alberto Alesiexplained that Mexico requires two million seats per year, to employ Mexicans between 18 and 29 years of age.
However, he noted that the most recent estimates indicate that In 2022, companies will only open between 520,000 and 540,000 new places; which implies that at least three quarters will remain outside the formal labor market.
The latter means that this year around one and a half million young people –of two million who join the economy and look for work– remain informal or, flatly, pass into the ranks of the unemployment.
“Nothing more and nothing less, about two million young people join each year as Economically active population (PEA)… a large part of the paradigm, which we continue to live in Mexico, is that we have a high unemployment rate among Mexicans between the ages of 18 and 29”.
“Today we do not have the full capacity – to employ young people – within what is being generated in the formal sector. If we talk about increase in workwe are seeing it from the side of the informality; Regrettably informal employment continues to win”, pointed out the director of Manpower.
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“The IMSS reports that the unemployment rate, among Mexicans aged 18 to 29, reaches 5.8%; figure that almost doubles the general unemployment rate which is 3%”.
— Alberto Alesi, director of ManpowerGroup Mexico
Companies suffer to fill vacancies
In contrast to the lack of opportunities and unemployment among the youth, ManpowerGoup reported that the Talent shortage in Mexicodefined as the lack of personnel with the skills, knowledge and experience to fill key positions, reached a rate of 65% in 2022.
He specified that this figure is the second highest since records have been, which is only surpassed by the data observed in 2021; when 74% of the companies indicated that they faced difficulties in completing their workforce.
The firm stated that the small companies are the ones who suffer the most to fill the key positions for their production line, with a rate of 68%; while the medium companies, large and micro reported a talent shortage of 67%, 66% and 60%, respectively.
Skills most in demand by companies
- Self-discipline and reliability
- Resilience and adaptability
- Collaboration and teamwork
- Reasoning and problem solving
- Leadership and social influence
Features most requested by companies
- Customer service
- Operations and logistics
- Sales and Marketing
- Administration / administrative assistant
- Information technology and data analyst
Employment trend in Mexico
For the third quarter of 2022, the ManpowerGroup Employment Outlook Survey revealed that:
- 57% of companies anticipate hiring
- 9% foresee the dismissal of personnel
- 27% will not make changes to their workforce
- 7% don’t know
Why do Mexicans resign?
through the study Give up, resign or return?the UKG global firm –specialized in personnel administration and human resources– reported that:
- 18% of Mexicans are considering leaving their job
- 57% of those who quit do so due to exhaustion and stress.
- 31% for lack of a better work-life balance.
- 19% greater growth opportunity.
- 50% for a feeling of value and belonging.