The Mexican job market has kicked into a higher gear, creating 43,295 new jobs in June alone. According to President Enrique Peña Nieto, the nation’s employment rate has been growing at a rate of 3.5% over the past 12 months.
The announcement came at an investors’ conference, where member firms of Mexican Business Council committed to invest a total of US$27.45 billion in new projects and business expansion.
Most of the jobs were created in the transport and communications sectors, with job growth in the construction industry hovering over 7%.
At the summit, Grupo Bimbo announced plans to link up the country’s thousands of small grocery shops to the mainstream financial system, while Bachoco Industries talked of investing millions of dollars to scale up its production capacity to produce 225,000 tons of eggs and 1.4 million tons of chicken.
“In the month of June, 43,295 new jobs were created. This is a much higher figure than in June of last year, which undoubtedly reflects the confidence and dynamism of our economy, and above all the conviction that the country’s economy is undergoing a recovery that will contribute to creating the conditions for greater prosperity for Mexicans,” Peña Nieto said.
Mexico’s recent reforms in energy and labor sectors have boosted investor confidence, which will pave the way for stronger growth, said Claudio X. Gonzalez Laporte, president of the Mexican Business Council.
More and more firms, says Laporte, are coming forward to invest in high-growth sectors such as telecommunications, mining, infrastructure, IT, auto parts, chemicals, consumer products, and retail shops.
Free trade deals, low wages and proximity to the prized U.S. market are making Mexico a new destination for manufacturing outsourcing.
Last week, German automaker BMW announced a billion-dollar investment to build a new plant in Mexico to produce 150,000 vehicles a year. BMW is actually one of the last global premium automakers to set up operations in Mexico. Nissan and Mercedes also said they would begin producing premium vehicles there.