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Causes loss of companies drop in employment

After Nuevo León (NL) suffered the worst month of April in employment performance since 2009, with the exception of two years ago, reporting the loss of 6,656 jobs compared to the previous month, economists attributed this adjustment to the closure of companies, as well as the fact that Holy Week fell in that month.

“What we simply observe is that the closure of companies that generated a large amount of employment coincides precisely with this reduction in the number of formal jobs,” said Jorge Omar Moreno, professor at the UANL’s economics faculty.

According to the IMSS report, traditionally in the months that coincide with Easter there is less job creation, said Gabriel Siller, director of analysis at Banco Base.

Moreno added that another factor that could explain the fall in employment could be that some people graduated from the youth building a future program and that since they are not permanently hired by a company, they lose their insurance and it is recorded as the loss of a job.

The industrial sector registered the weakest month of the year, reporting a loss of 3,369 jobs compared to March, adding 603,033 jobs; the business service segment employed 358,700 people, 2,190 less than the previous month.

In April, the entity registered with the IMSS a total of 75 thousand 353 companies, which implies 62 less than those reported at the end of March.

Of the nine segments registered by the agency, six registered a monthly loss of companies in the entity, two increased them and one kept the same amount.

The commerce sector registered 19,916 companies in April, 23 less than in March, the largest monthly loss; followed by the construction sector that lost 22 firms, reporting 12 thousand 176 economic units.

Due to jobs generated, 54 companies that employed between 51 and 250 people were lost; eight that employed between 251 and 500 people; another eight that created between 501 and 1,000 jobs.

Moreno commented that a factor that could be explaining the closure of the company is the high level of inflation, which has caused increases in the interest rate by Banxico, which limits the demand for products and therefore economic growth.

Another analyst, who requested anonymity, indicated that if the loss of jobs in the entity has a negative side, it is that most of the jobs lost are from jobs that earned two minimum wages.

“In April, 10,815 jobs were lost, but 4,159 jobs were created, resulting in a net loss of 6,656 jobs,” he said.

He explained that of the almost 11 thousand jobs lost, 9 thousand 918 were of those who had a salary of two minimum wages, 26 of one minimum wage and 352 of those who received three minimum wages.

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