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A Study Ranks Mexico’s Workforce Among the Top 10 Globally

A Study Ranks Mexico’s Workforce Among the Top 10 Globally

Mexico’s workforce is the ninth best among those of more than 60 countries, according to an analysis carried out by a multinational staffing and recruitment company.

The availability, cost-effectiveness, regulation, and productivity of each country's workforce are all taken into account when determining the Total Workforce Index (TWI) by ManpowerGroup.

According to ManpowerGroup, "the markets that rank highest... are those with the highest relative success across all four categories."

Mexico moved up 44 positions from 53rd on the 2021 TWI to ninth on the 2022 edition thanks to their success throughout the four categories.

It achieved the highest score (0.77 out of 1) in the cost-effectiveness category and performed well in regulation (0.72) and productivity (0.7). Although Mexico's workforce score was significantly lower at his 0.31, ManpowerGroup found it improved its position in this category.

"A law banning the outsourcing of Mexico's labor force may have discouraged foreign investment by companies looking for agency workers," said María Castro Nevarez, an executive at ManpowerGroup. However, "companies looking for large numbers of young talented workers can find a lot of talent," he said. We can provide permanent employment at a lower cost than many other markets can offer.”

Economy Minister Raquel Buenrostro said in November that "more than 400 North American companies are planning to relocate from Asia to Mexico."

Mexico's workforce of her two North American trading partners performed even better in the 2022 Total Labor Force Index, with the United States ranking her first and Canada her third.

Benefits associated with the North American free trade pact, the USMCA — including ones encompassed by the four TWI categories — are a driving force behind the nearshoring trend.

Since USMCA (United States-Mexico-Canada Agreement) was signed in 2020 to replace NAFTA, U.S. and global manufacturing companies are benefiting from dramatically reduced tariffs on goods going to and from Mexico. Companies also benefit from IMMEX (Manufacturing, Maquiladora and Export Services Industries Program), a Mexican government program that exempts taxes on the import of raw materials and goods if they transformed and exported within 18 months.

Shelter companies like Co-Production International can be a valuable resource for manufacturers looking to expand operations, offering quick ramps, scalability, and minimal risk to the business owner. CPI has over 44 years of U.S. and Mexican manufacturing expertise, bringing a robust network of strategic partners and dedicated teams to help you get up and running. Human resources, recruitment, hiring, and compliance with labor laws fall under CPI’s Shelter IMMEX Program, which allows manufacturers to focus 100% on manufacturing while CPI handles the rest.

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Co-Production International, Inc. Administrative Service Provider San Diego, California

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