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Workforce in Mexico

Workforce in Mexico

The workforce in Mexico is diversified, being comprised of production labor to highly skilled professionals which work in different sectors, mainly in manufacturing. In this article, our company formation consultants in Mexico cover some important aspects related to the Mexican workforce.

General presentation of the workforce in Mexico

The workforce in Mexico is highly educated, reliable and inexpensive. The country counts around 115,000 engineering and technical students yearly and it produces approximately three times more graduates per capita in the field than the U.S.

In the past 10 years, Mexico has significantly decreased compared to its main foreign competitor, China. The labor costs in Mexico decreased from being 200% more expensive than China to an only 19.6% difference at the present. Our Mexican company formation advisors can provide more details on this subect, as well as assistance related to setting up a company in Mexico.

When adding the transportation, logistics time and expenses, the manufacturing companies worldwide have discovered that by moving their activities to Mexico, they can dramatically decrease their production and labor costs.

The country has strong cultural ties with the U.S., with strong cultural, familial and economic ties existing between Tijuana and Dan Diego for numerous years.

How to attract the right workforce in Mexico

The type of activity a company undertakes is extremely important in how the labor force acts. Businesses in high tech industries, such as medical device production and aerospace usually pay higher salaries and have more cozy work environments. Our Mexico company registration agents can offer more details on this subject.

The skilled workforce in places like Baja California, Juarez, Reynosa and the Northern border area are confronted with more opportunities, therefore the HR departments of global corporations have to work more to raise the employee retention program. Salary is an important aspect in doing so, however, the culture of the business is another key factor. 

If you need to know more about the skill and labor force in Mexico, or for help to open a company in Mexico, please do not hesitate to contact our friendly staff.

Once you hire employees for a company operating in Mexico, you will be required to pay employment tax as per the applicable law. These taxes will be calculated as a percentage from the salary of the employee and will be submitted to the Mexican Social Security Institute.

This activity will fall under the responsibility of our accountants in Mexico, who are also in charge with any other payroll operations.