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Center Publication

Mexico—Mind the Gap—Employer Perspectives

by Laura Ruiz Pérez and Ricardo Massa Roldán

In Mexico, the commercial and manufacturing sectors, represent 19.7% and 17%, respectively, the two highest shares of the Mexican economy. The commercial sector in Mexico is retail and wholesale while the manufacturing sector is made up of industries responsible for developing the mechanical, physical, or chemical transformation process of materials to obtain new products.

  • In 2005, changes were made in the workplace by employers in the commercial sector to increase employee engagement. Because of these changes, there was an increase in employee satisfaction (48.8%) and employee involvement (18.1%). There were marginal changes, however, in employment and absenteeism among employees.
  • In Mexico, the average monthly compensation for commercial sector workers in 2005 was MEX$ 4,568 ($419 USD). The total monthly compensation for this sector was MEX$12,064,477,497 ($1,107,849,173 USD), of which 79.5% represented wages/salaries, 12% social security contributions; 5% social benefits, and 4.1% other compensation.

The average monthly compensation for manufacturing sector workers was MEX$ 5,679 ($608 USD).

  • The average monthly compensation in the manufacturing sector for managers was MEX$13,297 ($1,424 USD), for skilled manual laborers MEX$5,173 ($554 USD), and for unskilled manual laborers MEX$3,422 ($366 USD).
  • In 2001, 74.7% of the manufacturing sector decreased the income gap between the highest salary category and the lowest, while 20.8% increased the gap.
  • In 2001, 27.9% of the companies in the manufacturing sector in Mexico offered retirement savings plans; 5.4% offered a savings fund, 3.5% retirement insurance, 20.5% severance pay, and 8.2% seniority recognition.
  • In 2005, the main cause of safety risks at work was “neglect by the employee” (54.4%), followed by “accidents” (33.8%), and other causes (6.5%).

» Read more findings in Mind The Gap: Mexico Employers

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