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Mexico's Workforce & Labor Rates

Mexico's Manufacturing Workforce

The workforce in Mexico is well-educated, plentiful and reliable. Graduating around 115,000 engineering and technical students nationally per year, Mexico produces roughly three times more graduates per capita in the field than the United States.
Close partnerships fostered between private industry and educational system make sure Mexico’s manufacturing workforce is trained in the skills you need now and the innovating technologies of the future. Mexico offers a skilled workforce for your direct labor needs, but also trains management and facility staff for your indirect labor needs.

Labor Force in Mexico Educated Just for You

Baja California is home to 35 universities and 14 technical schools offering over one hundred professional degrees including Biotechnology, Physics, Oceanography, Digital Geothermal Technology, Astronomy, Aerospace, Electrical Engineering, and Sustainable Energy.

Educated Just for You - Mexico Workforce

Most universities and technical schools are in major urban centers such as Tijuana (35) and Ensenada (12) and many participate in direct education exchange programs with the leading universities in Southern California and San Diego.

The Baja California’s State University (UABC) is located in most major urban centers of the state and offers Bachelor of Science degrees in Aerospace, Electronics, Electrical, Mechanical, and Industrial engineering fields.

Additionally, executives cite benefits of the closer cultural ties with the mostly bilingual workforce versus difficulties observed in offshore locations like those in the Asia-Pacific. The manufacturing industry in Tijuana represents 47% of the permanent private jobs in the city boasting 50 years of manufacturing experience.

Globally Competitive Labor Rates in Mexico

In the high growth markets, total labor costs account for approximately 30 percent of total location-sensitive costs in manufacturing and approximately 65 percent of total location-sensitive costs in service operations. Labor costs are lowest in Mexico, India, and China.

Example Labor Cost Savings Using Mexico’s Highly-Skilled Workforce

Mexican labor rates are competitive and can be the difference between surviving and thriving in your innovation-driven industries.

In the last 10 years Mexico has significantly closed the gap in labor costs compared to its offshore competitor, China. Labor cost in Mexico went from being 200% more expensive than labor cost in China, to an impressive 19.6% difference today.

Adding in transportation, logistics time and costs, manufacturing companies are finding manufacturing in Mexico is dramatically less expensive, even with the growing gap in labor wage. 

Close Cultural Ties to The United States

Strong cultural, economic and familial ties have existed between Tijuana and San Diego for decades, some would say as long back as when California was still a part of Mexico. With over 59 million northbound crossings from Tijuana to San Diego a year, executives find that the region is not only largely bilingual, but also engrained with many American customs. Additionally, the US Dollar is a widely accepted and used form of currency, especially along Northern border regions and in city metropolises. The US dollar is also the main currency for most commercial trade.

A Workweek in Mexico: Labor Law, Work Shift, Holidays and Overtime

Labor Law, Work Shift, Holidays and Overtime


On this document you will learn about the Mexican labor law requirements for employee overtime, shifts/labor hours distribution, holidays and other factors to be considered.

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