We are in November 2024, and I want to talk to you about things that you probably already know, but that affect employment, employees, and employers in Mexico, both positively and negatively.
This year, we had elections in Mexico and the USA, which causes a pause, not to say some instability, in the economies of both countries. This directly affects topics such as FDI (Foreign Direct Investment), internal investments for growth and expansion, the creation of new businesses, etc., which are all triggers for new jobs. And if they slow down, job growth also slows down.
This impact is minimal, at least in the short term, thanks to the "nearshoring" we have been seeing. This phenomenon basically means placing your factory close to your customer, and it is almost entirely a matter of logistics and costs. "Nearshoring" has been benefiting Mexico thanks to a trade difference between the USA and China, where many Chinese manufacturers have been opening significant factories in Mexico, close to their US customers. And as we all know, what becomes fashionable, everyone follows, so we have many non-Chinese manufacturers also coming to Mexico.
Now that Trump has won, the issue of "nearshoring" and FDI may take a very different direction. We won't know any of this until decisions are made and campaign promises about tariffs are fulfilled. We will have to wait until then.
Just like this, there are many different topics we can discuss, and as you can see, they have very deep ramifications.
Manuel González
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