Labor
Availability/Unemployment/Turnover Rates in Juárez
Labor
force data is not collected and communicated in Mexico in the same manner that
we do it in the United States. For instance, when CD Juarez quotes a 2.7%
unemployment rate, they are counting every person who works at least 2 hours
per week and in either the "formal or informal" labor force. It is
important to note that citizens must be "employed" in order to access
government services such as health care, and with a liberal definition of what
"employed" means-unemployment rates are always artificially low in Mexico.
Estimates are that as many as 40% of the Juarez labor force participates
in what is referred to as the "informal economy". This is not
illegal/illicit activity, but rather activity that is not fully reported to
Mexican taxing entities.
Having
said all this, companies tend to look at labor turnover rates as a more
accurate indicator of labor availability, but one must use caution in how these
numbers are reported and interpreted as well. The official numbers
reported to Seguro Social indicate that the average labor turnover rate in Cd
Juarez is typically between 4% and 11% per month. This does not mean that
72% to 84% of the workforce is turning over during the year. In the
typical maquiladora operation, most of their labor turnover occurs during the
first 30-60 days of a worker's tenure, and once an employee remains beyond that
initial 60 day window, they typically become part of that operation's core
workforce. We have learned through dealing with industry in Juarez, that
beyond the 30-60 day window-monthly turnover then drops to the 2% range for
direct labor and that it is almost 0% for indirect and skilled labor. You
can also look to the skill level required of individual maquiladora operations,
and as in the United States, turnover will always be lower in maquiladoras that
utilize higher levels of technology and require greater skills of their
workforce. It is also important to note that during the first 18-24
months following the trend to move manufacturing off-shore to China in 2000 and
the economy downturn in the United States starting in 2001 -- Juarez lost
an estimated 85,000 maquiladora jobs and has only regained about 70,000 in the
past 24-36 months.
Labor
Force, Employment & Unemployment Rate
|
Population
14 and Over
|
Labor
Force
|
Employment
|
Unemployment
|
%
Rate
|
|
950,656
|
646,446
|
629,000
|
17,446
|
2.7%
|
|
Source:
State of Chihuahua CIES, 2006
Updated: August 2007
|
Annual
Turnover Rates for Maquiladoras
|
Maquiladoras
Turn
Over Rates
|
1998
|
9.7
|
1999
|
9.4
|
2000
|
8.2
|
2001
|
6.4
|
2002
|
4.4
|
2003
|
4.0
|
2004
|
5.0
|
2005
|
6.1
|
2006
|
7.0
|
Source: State of
Chihuahua CIES, 2006
Updated: August 2007
|
Turnover
Rates for Maquiladoras
Source: State of
Chihuahua CIES, 2006
Updated: August 2007
Employment
by Industry
|
Industry
|
Population
of Employees
|
Subordinate
Workers
|
Employers
|
Self
Employed
|
Not
Specified
|
Farmers
|
1,561
|
1,228
|
333
|
0
|
0
|
Construction
|
29,043
|
23,486
|
3,853
|
1,549
|
155
|
Manufacturers
|
233,006
|
224,717
|
2,664
|
5,032
|
593
|
Services
|
247,732
|
174,805
|
17,664
|
53,571
|
1,692
|
Commercial
|
104,731
|
89,202
|
5,842
|
8,841
|
847
|
Not
Specified
|
12,927
|
10,807
|
620
|
414
|
1,086
|
Source: State of
Chihuahua CIES, 2006
Updated: August 2007
Wages by Occupation
| Occupation |
Pesos |
U.S. Dollars |
|
Bilingual Secretary |
$12,182.05 |
$1,107.46 |
|
Quality Engineer |
$18,456.51 |
$1,677.86 |
|
Computer Programmer |
$15,563.57 |
$1,414.87 |
|
Production Supervisor |
$13,256.97 |
$1,205.18 |
|
Product Design Engineer |
$20,370.81
|
$1,851.89 |
|
Machine Mechanic |
$7,155.11 |
$650.46 |
|
Manufacturing Engineer |
$18,616.93 |
$1,692.45 |
|
Tool and Die Maker |
$7,990.96 |
$726.45 |
|
Electronics Technician |
$5,093.11 |
$463.01 |
|
Industrial Electrician |
$6,377.66 |
$579.79 |
|
Data Entry Clerk |
$5,106.44 |
$464.22 |
Source: State of
Chihuahua CIES, 2007
Updated: February 2008