The resilience of the Mexican automotive industry to Covid-19

COVID-19 has had a swift and deep impact on almost all economic sectors, with its effects on the automotive industry standing out in Mexico due to its economic relevance and international ties. Using official statistics and newspaper sources, this investigation shows the resilience of the Mexican automotive industry;its nearly complete halt in production and exports contrasts with a limited destruction of jobs, as they are mainly made up of formal jobs in large companies. But the recovery comes at a price, lower wages and different speeds of recovery, with the Bajio as the most affected region. Similarities with the 2008-09 crisis are clear (fast reestablishment of production and export vs. slower reinstatement of employment) and its solution will also depend on the external sector, mainly the United States.

From a health crisis to economic and labor crises: Spatial patterns of the impact of COVID-19 on formal employment in Mexico

After a brief review of the implications for Mexico of the influenza A (H1N1) pandemic in 2009 and similar studies on the impact of COVID-19 on the labor market, this study addresses the early development of the epidemic in Mexico and the actions taken by the federal government to face this issue. Its impacts on the economy in general and on the labor market in particular are analyzed below. The focus is on its consequences on formal employment based on data from the Mexican Social Security Institute (IMSS) to determine spatial patterns and their relationship with economic activities. The dramatic loss of jobs in traditional beach+sun resorts that hit particularly hard the Cancun, Riviera Maya and Riviera Nayarit destinations has occurred along with a crisis in the accomodation and catering services in large cities such as Mexico City. The near-total closure of manufacturing activities, particularly in the automotive industry, has severely affected the Bajío corridor, while the northern border underwent a major industrial diversification triggered by the crisis. Construction is also seriously affected, impacting both the scarce formal employment in small rural municipalities and jobs in large metropolitan areas and cities;especially the Monterrey metropolitan zone and oil-extraction areas such as Cd. del Carmen and Tampico-Altamira-Cd. Madero. Last, the decline in formal employment in certain agricultural regions, mainly areas of commercial agriculture, is not attributable to the epidemic but to the seasonal nature of this activity. © 2021 Instituto de Geografia. All rights reserved.