LABOR FORCE

Labor Availability, Unemployment and Turnover Rates in CD. Juárez.

Labor-force data is not collected and communicated in México in the same manner conducted in the United States. For instance, when Cd. Juárez quotes a 2.7 percent unemployment rate, they are counting every person who works at least two 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 healthcare.

With a liberal definition of what “employed” means, unemployment rates are always artificially low in México. It is estimated that as much as 40 percent of the Cd. Juárez labor force participates in what is referred to as the “informal economy.” This is not illegal activity, rather activity that is not fully reported to Mexican taxing entities.

LABOR TURNOVER

With this in mind, companies tend to look at labor-turnover rates as a more accurate indicator of labor availability. One must use caution, however, in how these numbers are reported and interpreted. The official numbers reported to Social Security (Seguro Social) indicate that the average labor-turnover rate in Cd. Juárez is typically between 4 and 11 percent per month.

This does not mean that 72 to 84 percent 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. 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 Cd. Juárez that beyond the 30–60 day window, monthly turnover drops to the 2 percent range for direct labor and nearly 0 percent 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.

 

Wages by Occupation (Monthly Earnings)

2012

Occupation

Pesos

U.S. Dollars

Bilingual Secretary

$22,604.53

$1,738.81  

Customer Support (Public Relations)

$33,997.99

$2,615.23

Maintenance Supervisor

$40,214.59

$3,093.43

Manufacturing Engineer

$36,820.68

$2,832.36

Operations Manager

$112,592.48

$8,660.96

Plant Manager

$145,425.93

$11,186.61

Process Engineer

$36,820.68

$2,832.36

Production Manager

$81,453.97

$6,265.69

Quality Assurance Manager

$83,700.76

$6,438.52

Quality Control Engineer

$36,718.11

$2,824.47

Shipping / Receiving Clerk

$9,990.89

$768.53

Systems Engineer (Software)

$41,820.22

$3,216.94

Systems Engineer (Hardware)

$32,047.73

$2,465.21

Systems Manager

$81,256.89

$6,250.53

Exchange Rate: 13.00 pesos per $1 dollar
 
Source: DECJ - Am. Ind.
 
Updated: August 2012

 

Employment by Industry

Industry

No. 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
 
Note: Census 2010 Statistics will available February 2011
 

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