More maquiladora job losses south of the border
JUÁREZ, Chihuahua (KVIA) -- The Mexican National Association of Importers and Exporters (ANIERM) in Juárez reports that the Transformation Sector (manufacturing side) continues its downward trend of job losses, with 834 eliminated in August alone.
According to the Mexican Social Security Institute (IMSS), Ciudad Juárez lost 155 jobs last month, dropping from 488,368 in July to 488,213 in August.
The city has already seen a total decrease of 27,420 jobs over the past two and a half years, when it topped out at 515,633 positions registered with the IMSS in March 2023.
Compared to August of last year, 7,038 jobs have been lost, based on IMSS data.
ANIERM states that social services gained 504 jobs, business services added 214, commerce increased by 30, the electrical industry added 26, and the agricultural sector increased by 4. Other sectors that shed jobs included transportation, losing 61, and construction, which lost 37.
"The pillar of the economy, manufacturing, has lost nearly 28,000 jobs, accounting for almost all of the losses," said Marcelo Vázquez, Chihuahua Delegate for ANIERM. "This is serious because when manufacturing declines, other sectors of the economy also begin to contract."
So far, construction is the sector that has lost the most jobs, with 1,441 fewer positions over the past year, according to ANIERM.
"Much of this is due to the uncertainty caused by tariffs, and another part of this trend is because wages in Juárez are 50% higher than in the rest of the country," added Delegate Vázquez.
ANIERM states that Maquiladoras are hesitant to invest and expand on the border because labor costs have become too high. Other factors of uncertainty include labor reforms, the threat of reduced working hours, double bonuses, and other issues that could further increase labor expenses.
Additional concerns involve reciprocal tariffs imposed by President Trump on several Central American countries, which prevent maquiladoras from relocating.
"Right now, the business sector and the government must prioritize improving conditions for companies and work to attract and develop new Mexican businesses," Vázquez also said.
