Overview of Mexico
As of 2021, Mexico is the fifteenth largest economy in the world by nominal GDP (Gross Domestic Product). The service sector dominates the economy with a huge share of 64.5%, followed by the industry sector with 31.9%. The economic growth and economic development of Mexico have a greater performance compared to other Latin American countries.
Population- 127.79 million
GDP- 1076.16 billion USD (FY20)
As per the National Bureau of Statistics reports, the Mexican economy is recovering from the pandemic enforced restrictions. The GDP of Mexico has reduced by about 8.24 % in 2020 compared to the previous year and has reached a valuation of US $1076.16 billion. The unemployment has been reduced by 3.6 % compared to the previous year.
The COVID-19 has specifically affected the industrial and personal service sectors. The industrial sector is expected to grow by 6.8 % and regain its strength, especially in the automotive and electronics industry, in the year 2021. Real estate and transportation are emerging sectors.
A brief glimpse of the industries
The economy of Mexico is dominated by the industrial sector. The manufacturing sector is known to have flourished because of political and economic reorganization. The automotive and electronic industry has regained strength compared to the previous years. There are several job opportunities available in this sector.
- The IT sector is another major industry that has witnessed significant growth in recent times. There are numerous IT companies and start-ups in the country. Guadalajara is a city in Mexico which is called Mexico's Silicon Valley. High-paying corporate jobs are available in this sector.
- Another major industry in Mexico is the banking industry which exhibits encouraging potential in the coming years. There are a lot of big banks present in Mexico City. Banking companies provide numerous job opportunities with attractive pay.
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Cost of living in Mexico
Mexico is one of the best countries in the world to live in and work in terms of cost of living and quality of life. It is the 62nd best country to live in according to the rank list. The quality and lifestyle are improved while living in Mexico. Some cities are cheaper compared to Canadian and United States cities. Monterrey is one of the liveliest cities with a good infrastructure and modern subway network.
Cost of Renting
The cost of living on rent in Mexico depends on the location as well as the age of the building. While renting out a 1 BHK in Mexico, you can expect to pay around $401.4 (8304.08 MXN), depending upon the area. The rent depends on the location as well as the features available in the property. In the year 2021 Mexico is expected to witness an increase in hiring in the following sectors: -
Top skills in Mexico
Mexico is a developing free-market economy which is dominated by the industrial and service sector. The other main industries include the chemical industry, food, and beverage industry, tobacco, clothing sector, automobile industry, and tourism. Consequently, it is keen on hiring skilled individuals and highly qualified professionals trained in various hard and soft skills. From customer service representatives to graphic designers and translators, a wide range of job openings are available to expats and immigrants.
Major skills and areas which have witnessed a recent growth rate
- Customer service
- Software/ IT
- Graphic Design
- ·Translation (English Language)
Top skills city-wise occupation-wise
Mexico is one of the best places to live in with its quality of life and cost of living. It opens a door of job opportunities to enthusiastic and vibrant immigrants and expats.
- Monterrey - Monterrey is known as the industrial capital of the country, which opens a huge door of opportunities for business ventures. It is called a city of tomorrow due to the development of the business as well as individuals. The city has many industrial parks that include automotive parts, cement, steel and iron manufacturing, metal fabrication, and consumer electronics. The city also has many multinational companies and new start-ups as well.
- Guadalajara - Guadalajara is known for its IT and manufacturing business and has high-paying job opportunities. The IT sector has grown very rapidly, and the city is sometimes called Mexico's Silicon Valley. The place is also good for start-ups. There are a lot of high-level corporate jobs available in the city.
- Mexico City - Mexico City is called the economic backbone of the country. It is one of the best cities which provides high-paying jobs and has potential for the financial industry. Many big banks are situated in the city. Banking companies provide a door of job opportunities with high pay.
As an employer, you need to factor in the hiring cost while conducting a recruitment drive. Some of the most important factors that you need to consider are: -
- Cost of conducting an interview.
- Cost of onboarding and training
- Time invested in the process.
- Opportunity cost
Salary structure for various roles
Average salaries that are offered to professionals engaged in different roles across various industries in Mexico are as follows: -
Employment Laws in Mexico
Mexico is a country that has a regulated employment system. As per the sector one is employed in, important job aspects like minimum wages, maximum work hours, and overtime payment will be considerably affected. The following aspects govern the employment market in Mexico: -
- Maximum work hours
- Paid and Unpaid leaves
- Mandatory rest breaks
- Workplace surveillance
- Year-end bonus
The laws and norms which determine the employer-employee relationships in Mexico are based upon
- Federal and Provincial Legislations
- Constitutional Law
- Social Security Laws
How Can Skuad Help You with Hiring in Mexico?
Strict rules and regulations govern Mexico's employment market. Hence, it can be a tiresome process for you to complete your recruitment processes here, resulting in a waste of time and resources. Skuad offers you a one-stop solution for all your hiring requirements. Connect with Skuad to know more.
FAQs about hiring in Mexico
Can a US company hire an employee in Mexico?
US companies can hire employees in Mexico by adhering to Mexico employment laws and regulations. Using an Employer of Record (EOR) like Skuad is a highly effective solution for US companies hiring in Mexico. An EOR simplifies compliance with Mexico's employment standards and labor laws, handling legal, tax, and HR responsibilities. This approach streamlines the hiring process, ensuring efficient and compliant expansion of US companies' workforce in Mexico, in line with both US and Mexican employment regulations.
What are the working conditions in Mexico?
Mexico's employment laws specify a maximum of 48 working hours per week, typically divided over six days, allowing for one day of rest. Employees are entitled to paid leave, which increases with tenure: 12 days of leave after one year of service, for each subsequent year of service, employees will accrue an additional 2 days of vacation until the fifth year. After the fifth year of service, employees will accrue an additional 2 vacation days for every 5 years of service.
This structure reflects Mexico's commitment to balancing work and life, a trend also seen in the growing sector of remote jobs in Mexico, where flexible working arrangements are increasingly common.