Mexico’s formal sector is posting gains in employment and pay, even as World Cup hangover hits
Mexico lost more formal sector jobs last month than in any July on record. The Mexican Social Security Institute (IMSS) reported on Monday that the number of people in formal sector jobs declined by 19,550 in July compared to the previous month. On a month-over-month basis, the workforce shrank by 0.1%. “This result reflects, among other factors, seasonality associated with the end of the school year and, in part, the declining phase of the agricultural cycle,” IMSS said in a statement. However, data shows that the size of Mexico’s formal sector workforce usually increases in July. In a period of almost three decades dating back to 1998 — when IMSS first kept comparable records — Mexico has lost formal sector jobs in July in just six years, while the workforce increased in the seventh month of 23 years. So what was the real reason for the record job losses last month? The conclusion of the FIFA men’s World Cup, suggests a report by the news outlet Bloomber...