Everything you need to know to open a business in Mexico

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November 8, 2023

Opening a small business comes with its challenges and opportunities. Find out the nuts and bolts of starting a successful business in Mexico. (Canva)

Want to open a small business in Mexico? Here’s a preview of the potential problems, solutions and of course – benefits!

Opening a small business anywhere comes with its challenges and opportunities. I sat down with Shirley of Nice Day Coffee in Mexico City, and Mariana of 360 Agency, a consulting firm that assists start-ups and investors, to find out the nuts and bolts of starting and running a successful business in Mexico.

Having either a Mexican partner or bilingual manager with whom you have already established trust. This can help tremendously when communicating with and understanding your employees, contractors and licensors. (Canva)

Problems and solutions to opening a business in Mexico:

The issue: Language and cultural barriers. Whether or not you’re proficient in Spanish, there is more to learn about Mexico’s professional culture than just the language. Cultural differences play a big part in your success as a small business owner, and the occurrences one may encounter in Mexico’s business environment may prove tough to translate.

The solution: Shirley suggests having either a Mexican partner or bilingual manager with whom you have already established trust. This can help tremendously when communicating with and understanding your employees, contractors and licensers, who may not be used to the straight-to-the-point attitude of a North American expat. “Managing performance problems, or worse, managing out is definitely not as easy [here] as it is in the United States. Be prepared for that heading in,” Shirley says.

The issue: There is a chance that your contractor might disappear one day, never to return. With the money you’ve already paid. This can happen anywhere.

The solution: Discuss and agree upon a timeline in advance, paying out when certain stages are complete. Photo updates of work finished at a regular cadence may help, but just be sure to establish these requirements in advance. Request a “factura” (a legal invoice for goods and services) for all work completed, but also for any material costs.

The issue: Permits and other red tape. As in most countries, the red tape around operating permits can be tricky. On the bright side, Shirley was surprised at the ease of the permitting process in Mexico compared to some of the entrepreneurial “horror stories” she had heard in the States.

The solution: Hire proven specialists to help. Shirley navigated much of the permitting process with the help of local consultant Mariana of MX360 Agency in Mexico City, which provides consulting services for residential and commercial real estate, business start-ups and general relocation to Mexico. “Mexican laws and regulations are different from [those of] the U.S., so it’s very important to reach out to a professional before starting a business in order to avoid the most amount of red tape possible, as well as to avoid being subject to fines,” Mariana says. If you are not fluent in the language and legal nuances, working with a consultant will be one of your best investments. “I always start by telling my clients that the most important professionals they should be working side by side with are a lawyer and an accountant,” Mariana recommends.

The issue: Accounting. Tracking a new business’s finances is not for the weary. It’s especially intimidating in a new country.

The solution: Shirley advises all aspiring business owners to hire a reputable, experienced accountant. After a few months, hire another reputable, unrelated accountant to audit the first one. “Do not skip this step. I also think it’s fair game to head into this with full transparency on both sides,” she says, “share this expectation with the first accountant before agreeing to the engagement.”

Tracking a new business’s finances is not for the weary. It’s especially intimidating in a new country. Hire a reputable, experienced accountant. After a few months, hire another reputable, unrelated accountant to audit the first one. (Canva)

“Some people won’t like this, and that’s okay,” Shirley continues. “Find a different accountant…this is one of the most important business relationships you’ll have, so both sides should feel 100% confident starting the relationship.”

The issue: Employee misconduct. Shirley suggests knowing the laws of hiring and dismissing employees and knowing those laws well before you even start. “This is one of the most stressful parts of running a business here,” she says. The legalities around staff in Mexico differ vastly from those in other countries (notably the U.S.) and it’s essential to be prepared for the employee-sided environment in which you’ll find yourself.

The solution: Ask for recommendation letters from previous employers and call the business directly to make sure it’s actually an employer and not a friend. Ask your accountant to conduct background checks of any pending or former litigation for each potential hire. If an employee faced legal challenges with an employer in the past, i.e. theft or negligence, this will be visible on their record.

The benefits of opening a business in Mexico:

Opening a business in the United States is a costly, lengthy and oftentimes impossible goal to accomplish. Mexico provides an excellent environment to open and run a successful brick-and-mortar. Here are just a few reasons why:

The red tape: That which might otherwise be the biggest challenge anywhere else was, for Shirley, surprisingly navigable here. With a little help from a lawyer or advisor, one can tackle the paperwork issue in Mexico with general ease.

The cost: Cost depends on the locations you’re considering, but generally speaking, it is significantly less expensive to open a physical shop in Mexico. When I asked if she felt the personal investment needed to launch Nice Day Coffee was fair, Shirley replied with a confident “yes.”

The community: Starting a business in Mexico City provides a wonderful outlet to make friends, build a community and immerse yourself in the local neighborhood. “We know a lot of the neighbors now, what they do, where they live, what’s going on in their lives. If anyone sees anything suspicious, they will text or message us… we really feel part of the community, and we feel safe,” Shirley says.

The chance to give back: “This has probably been the best part,” says Shirley, adding that Mexico’s highly structured work culture makes it easy for expat business owners to create opportunities that often don’t exist here. In a country where professional advancement can be incredibly challenging, expat business owners are in a good position to make career progress a reality for their employees.

Shirley adds, “For those of your readers inspired to pursue a similar journey, I really want to encourage prioritizing opportunity creation to benefit everyone involved. Living here is such a privilege, and it comes with a responsibility to positively impact the communities we join.”

Terms you need to know when opening a business in Mexico:

Facturas – To make sure payments are processed correctly and according to the law, ask everyone you interact with for a factura. What’s a factura? It’s a legal receipt of goods and services that can be used as both proof of payment and a necessary document for tax deductions. You can also ask for this paperwork when receiving “bills” from suppliers.
Traspasos – This is an official transfer of ownership required for brick-and-mortar businesses. Many locations will provide these. What is or isn’t included in the traspaso is negotiable. “Don’t be afraid to negotiate, and make sure the landlord is involved, so you can reduce the possibility of being taken advantage of in this process.”
Actas – There are two actas – or bylaws – you should know about when starting your business. An Acta Costitutiva is a mandatory document needed to register a business in Mexico. An Acta de Asamblea is a document that is created and registered with a notary each time there is a change in the business’s bylaws. Both must be notarized in person and in Spanish. As business jargon can be difficult to understand in one’s own native language, a translator might be useful during this process.
Aval – Before securing their current location, Shirley and Nery put in multiple offers that kept getting declined. Eventually, they realized they needed an aval. An aval is a financial guarantor of your brick-and-mortar and many owners require that the aval own property in the city in which you’re renting. If you’re opening in Mexico City, for example, a family member who owns property there would make an excellent aval. Since neither Shirley nor Nery had access to a guarantor in CDMX, they had to go a different route.
Poliza Jurídica – This is where a Poliza Jurídica comes in. Without a proper aval, property renters can often opt for a Poliza Jurídica or a legal insurance company that can act as a guarantor. According to Mariana, most landlords renting commercially will ask for this, as the Poliza Jurídica will also run a background check of the tenant and act as a legal mediator between landlord and tenant in case of a controversy.

Bethany Platanella is a travel planner and lifestyle writer based in Mexico City. She lives for the dopamine hit that comes directly after booking a plane ticket, exploring local markets, practicing yoga and munching on fresh tortillas. Sign up to receive her Sunday Love Letters to your inbox, peruse her blog, or follow her on Instagram.

Zapatistas declare dissolution of ‘autonomous’ communities in Chiapas

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MND Staff

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November 7, 2023

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EZLN-_Te_miro — Several organizations in Chiapas, namely the Zapatista Army of National Liberation (EZLN), have warned for several years that "Chiapas is on the verge of civil war.” (Wikimedia Commons)

The Zapatista Army of National Liberation (EZLN) – a rebel Indigenous group best known for staging an uprising in January 1994 – has announced the dissolution of its “autonomous municipalities” in the southern state of Chiapas.

“A few months ago, after a long and profound critical and self-critical analysis, and after consulting all the Zapatista towns, it was decided to disappear the Zapatista Rebel Autonomous Municipalities (MAREZ) and the Good Government Juntas,” the EZLN said in a statement signed by Zapatista leader Subcomandante Moisés.

The EZLN uprising in 1994 was led by a man known as Subcomandante Marcos (seen here). Today he goes by Subcomandante Galeano, and has a lower profile role. (Jose Villa/Wikimedia)

Posted to an official Zapatista website on Sunday, the statement said that “all seals, letterheads, positions, representations and agreements with the name of any MAREZ or any of the Good Government Juntas are invalid from this moment on.”

It also said that “no person can present themselves as a member, authority or representative of any MAREZ or Good Government Junta.”

The autonomous municipalities – which are not officially recognized by the federal government – were declared in the years after the Zapatistas’ 12-day uprising in Chiapas in early 1994, which coincided with the entry into force of the North American Free Trade Agreement, or NAFTA.

The EZLN statement didn’t reveal the motivation for dissolving them, saying that “the reasons and process by which this decision was made” will be disclosed in future texts.

So-called “Good Governance Zones” have been abolished, although the Zapatistas are yet to release a more comprehensive statement on their reasoning. (Hajor/Wikimedia)

“We will also explain to you what the new structure of Zapatista autonomy is like and how it has been developing. All that, and more things, will appear at the right time,” the statement said.

The Associated Press reported that the changes may be related to the upcoming presidential election, noting that the EZLN has put forward candidates in the past.

Gerardo Alberto González Figueroa, an academic at the College of the Southern Border in San Cristóbal de las Casas, told the newspaper Milenio that the EZLN has ceded control of its strongholds to criminal groups that operate in Chiapas.

While the EZLN statement didn’t say that, it did speak at length about crime problems in Chiapas, using the kind of quirky language for which the Zapatistas have become known.

It is unclear why the Zapatistas have decided to abolish MAREZ areas in the state, but some believe the group has been forced to cede control to cartels in the region. (Damián Sánchez/Cuartoscuro)

“San Cristóbal de las Casas, Comitán, Las Margaritas and Palenque, to mention some municipal seats, are in the hands of one of the disorganized crime cartels and in dispute with another,” said the statement, of which English, Italian, Portuguese and German translations were published in addition to the original in Spanish.

“This is confirmed by the so-called hotel, tourism, restaurant and service industries. Those who work in these places know this and have not reported it because they are threatened and, furthermore, because they know that any request is useless, because the state and municipal authorities are the ones who commit crimes,” it continued.

The EZLN, which protested violence in Chiapas in marches in June, said that the crime problem in rural communities is “even more serious.”

“This is what is being shouted by those who live in all the regions of Chiapas, particularly in the entire border strip with Guatemala,” the statement said.

Presumed members of the Sinaloa Cartel entered the town Frontera Comalapa, Chiapas. The state, which borders Guatemala, has increasingly become a hotbed for cartel violence as armed groups struggle to control the flow of migrants heading north to the United States. (Screen Capture)

The southern border region of Chiapas has long been plagued by a turf war between the Sinaloa Cartel and the Jalisco New Generation Cartel, as well as local crime groups affiliated with those organizations.

The EZLN statement also said that “the main cities” of Chiapas “are in complete chaos” and that mayors’ offices are “occupied by what we call ‘legal hitmen’ or ‘disorganized crime.'”

“There are blockades, robberies, kidnappings, extortion, forced recruitment, shootings. This is the effect of the protection of the state government and the dispute over political positions,” it said.

According to González, cartels have “infiltrated” various parts of Chiapas, not just those controlled by the EZLN.

The state of Chiapas has suffered through a turf war between the Sinaloa and Jalisco New Generation Cartels. (Isabel Mateos/Cuartoscuro)

“All organizations are suffering from this growth of drug trafficking,” he said.

The EZLN statement asserted that the military and municipal, state and federal police forces “are not in Chiapas to protect the civilian population” and have the “sole purpose” of stopping migration through the state.

“That is the order that came from the U.S. government,” said the organization, which rejects government aid programs and has opposed the current administration’s infrastructure projects, including the Maya Train.

According to Gaspar Morquecho, an anthropologist who has studied the EZLN for decades, the Zapatistas have become increasingly isolated and young people have consequently left towns controlled by the organization to seek work and education opportunities elsewhere.

Chiapas is Mexico’s most economically deprived state, and many residents are forced to leave to seek a living in other parts of the country. (Elizabeth RUiz/Cuartoscuro)

“The EZLN has also closed off ties to other groups and organizations, and so they have become isolated,” said Morquecho, who was quoted in an Associated Press report.

While their autonomous municipalities have apparently gone by the wayside, the EZLN – formerly headed up by the mysterious Subcomandante Marcos – still survives 40 years after its formation.

Its statement said that its caracoles, or administrative centers, remain, but are “closed to the outside world until further notice.”

It also said that a celebration will be held to mark the 30th anniversary of its 1994 uprising.

Subcomandante Marcos of National Zapatista Liberation Army (EZLN) — Subcomandante Marcos, former leader of the Zapatista National Liberation Army, photographed in Monclova, Coahuila, in 2006. (Photo: Moisés Zuñiga/Cuartoscuro)

“We inform you that we will hold a celebration to mark the 30th anniversary of the beginning of the war against oblivion. … All people who signed the ‘Declaration for Life‘ are invited. However, it is our duty, while inviting you, to discourage you [from coming],” the statement said before saying that Chiapas “is not safe” due to the presence of criminal organizations.

“… The tentative dates of the commemorations are between December 23, 2023 and January 7, 2024, the central celebration being December 30-31 and January 1-2. We will tell you the place afterwards. That is to say, we do want you to come, although we don’t recommend it,” the EZLN said.

“Even if you don’t arrive, don’t worry. We will still send you photos and videos,” the statement added.

With reports from Milenio and AP

Who is performing at Tecate Pa’l Norte 2024 music festival?

By

Cat Rainsford

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November 7, 2023

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Mexico’s much-anticipated Tecate Pa’l Norte festival is gearing up for 2024 and has announced its headline acts, featuring artists including Kendrick Lamar, Peso Pluma and Blink-182.

The festival will take place March 29-31, 2024 in Monterrey’s Fundidora Park and is eagerly awaited by fans of contemporary music from Mexico and around the world.

The full festival lineup. (Tecate P’al Norte)

The headliners

Friday will feature rap superstars Kendrick Lamar and Peso Pluma, as well as British rock act Keane.

Saturday will see San Diego punks Blink-182, former One Direction member Louis Tomlinson and Jared Leto’s 30 Seconds to Mars.

Closing out the final day of the festival on Sunday, are rockers Imagine Dragons and Placebo, as well as Maná and Fuerza Regida.

The festival is held in Monterrey’s Fundidora Park. (Nikki Hedrick/X)

When can I buy tickets and how much will they cost?

General tickets went on sale on Tuesday, Nov. 7 at 2 p.m. Four ticket types are on offer, with Phase 1 prices ranging from 4270 pesos (US $224) to 8,870 pesos (US $507).

While all tickets give full access to the festival’s nine stages, 150+ acts, 35 hours of music and 50+ food stalls, luxury options also include additional services such as exclusive bathrooms, bars, rest areas, concierge and gourmet food options.

Tecate Pa’l Norte held its first festival back in 2012 as the Pa’l Norte Rock Festival, featuring a single day of music, two stages and 16 artists.

Since then, it has grown to become one of Mexico’s biggest and best-known music festivals, describing itself as “the most powerful and ascendant festival in Mexico,” and a “faithful representative of the culture and traditions of the north of the country.”

With reports from Tikitakas and Infobae

New US sanctions announced against Sinaloa Cartel members

By

MND Staff

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November 7, 2023

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Screenshot 2023-11-07 at 14.31.33 — The United State's Drug Enforcement Agency has named a number of individuals - many from the same family - in the new round of sanctions. (DEA)

The United States government’s crackdown on Mexican drug traffickers continues.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Tuesday announced sanctions against 13 alleged Sinaloa Cartel members and four companies based in Sonora. Several of the designated individuals are members of the same family.

The U.S. government sanctions were “coordinated closely” with the Mexican government. (Rogelio Morales/Cuartoscuro)

Juan Carlos Morgan Huerta, which Treasury identified as a “Nogales, Sonora-based ‘plaza boss’ for the Sinaloa Cartel,” features prominently at the top of a U.S. government chart of the 13 sanctioned individuals.

Treasury said in a statement that Morgan Huerta, also known as “Cacayo,” manages cartel operations in Nogales and oversees the trafficking of multi-tonne quantities of drugs including cocaine, heroin, methamphetamine and illicit fentanyl from Mexico to the United States.

He was indicted in the U.S. on various drug trafficking charges in 2021, but remains a fugitive, Treasury said. According to the government chart, Morgan Huerta reports to Sinaloa Cartel leader Ismael “El Mayo” Zambada García.

“Several adult members of Morgan Huerta’s family were also designated today, including four brothers and an uncle, all Mexican nationals,” Treasury said.

El Mayo Zembada — The Morgan Huerta family are believed to report to Ismael “El Mayo” Zambada, the co-founder and a current leader of the Sinaloa Cartel. (Wikimedia)

“… Brothers José Arnoldo Morgan Huerta (a.k.a. “Chachio”), José Luis Morgan Huerta (a.k.a. “Gordo”), Miguel Ángel Morgan Huerta, and Martín Morgan Huerta, as well as their uncle, Óscar Murillo Morgan (a.k.a. “Chino”), each play critical roles in the organization,” the department said.

“For instance, as a former Mexican law enforcement officer, Miguel Ángel Morgan Huerta uses his connections to bribe authorities, while another brother, Martín Morgan Huerta, and their uncle, Óscar Murillo Morgan, maintain sources of supply for illicit drugs. Family members played other key roles including, but not limited to, managing transportation and logistics, negotiating business deals, and laundering illicit drug proceeds.”

Among the other alleged Sinaloa Cartel members who were designated by OFAC on Tuesday are:

David Alonso Chavarin Preciado, “who oversees drug trafficking operations in Nogales for his brother-in-law [Juan Carlos] Morgan Huerta.”
Jesús Francisco Camacho Porchas
Óscar Enrique Moreno Orozco
Ramiro Martín Romero Wirichaga
Cristian Julian Meneses Ospina, a Colombian national.

Businesses and operators on both sides of the border have been sanctioned by OFAC. (U.S. CBP)

Treasury said that “each of these individuals is involved in various aspects of drug trafficking, transportation logistics, money laundering, or other illicit activities for [Juan Carlos] Morgan Huerta.”

“Of note, Jesus Francisco Camacho Porchas and Óscar Enrique Moreno Orozco are both fugitives from drug charges in the state of Arizona,” it added.

The final two individuals sanctioned by OFAC on Tuesday are:

Sergio Isaías Hernández Mazón
Álvaro Ramos Acosta

A National Guard agent with bags of confiscated fentanyl. — The sanctions are part of a wider effort to limit the flow of fentanyl and other illicit drugs into the United States. (Guardia Nacional)

Treasury said they are “drug traffickers and businessmen” who collaborate with Juan Carlos Morgan Huerta.

“Although Sergio Isaías Hernández Mazón and Álvaro Ramos Acosta often work alongside Morgan Huerta, they also have their own, established links to high-level Sinaloa Cartel members,” the department said.

OFAC designated the 13 individuals pursuant to a 2021 executive order “for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.”

The four companies designated by OFAC are:

Habanero’s, a Nogales restaurant.
Morgan Golden Mining, located in Hermosillo, Sonora.
Comercializadora Villba Stone, a commercial stone company in Nogales.
Exportadora del Campos Ramos Acosta, an import/export company in Nogales.

Habaneros restaurant, in Nogales, is one of the businesses sanctioned by OFAC. (restaurantjump.com)

Those companies were sanctioned because they are owned, controlled or directed by, or have acted on behalf of, some of the designated individuals, including Juan Carlos Morgan Huerta.

Treasury said its sanctioning of the 13 individuals and four companies was “coordinated closely” with the Mexican government, including its Financial Intelligence Unit.

“As a result of today’s action, all property and interests in property of the designated individuals and entities that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked,” the department said.

The alleged Sinaloa Cartel members designated on Tuesday join a large group of people from the same criminal organization who have already been sanctioned by OFAC.

They include “El Mayo,” various sons of imprisoned drug lord and former Sinaloa Cartel leader Joaquín “El Chapo” Guzmán and many alleged members of the “Los Chapitos” sanction of the cartel.

The United States has announced sanctions against Sinaloa Cartel members on several occasions this year, including in September and August.

“Responsible for a significant portion of the illicit fentanyl and other deadly drugs trafficked into the United States, the Sinaloa Cartel is one of the most powerful and pervasive drug trafficking organizations in the world,” Treasury said Tuesday.

Anne Milgram, head of the U.S. Drug Enforcement Administration, said earlier this year that the Sinaloa Cartel and the Jalisco New Generation Cartel pose “the greatest criminal threat the United States has ever faced.”

Mexico News Daily

Chinese company Didi continues big investments in Mexico

By

Cat Rainsford

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November 7, 2023

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cdn-3.expansion — The ride hailing and delivery app Didi will invest US $410 million in the Latin American region, the company has announced. (Didi)

Chinese mobility platform Didi will close the year with a total investment of US $410 million in Latin America as the company rapidly expands its ride-hailing and food delivery services in Mexico and across the region.

Didi’s investments focus on increasing profits for platform users, offering better value and creating a community around their services, said Didi’s General Director for Latin America, the Middle East and Africa Juan Andrés Panamá in an interview with Forbes México.

Juan Andrés Panamá, Didi General Director for Latin America said that the app is looking to increase the incentives it offers to potential users. (Didi)

Founded in China in 2012, the company first began offering ride-hailing services in Mexico in 2018 and launched its food delivery business in the country in 2019. Today, 350,000 drivers and delivery drivers work through the platform around the country.

“We are investing strategically in both businesses,” Daniel Serra, Senior Director of Operations at Didi Delivery Latin America, told Forbes. “Our goal is to grow and add a lot of value in both, and also in fintech, which is just getting started.”

Andrés Panamá explained that the first prong of Didi’s investment strategy involves creating financial incentives for more drivers to access the platform, as a lack of drivers has been a major hurdle for it to overcome.“In Latin America, the earnings are approximately 300% more than a minimum wage, when a driver connects for nine hours, five days a week,” he said.

However, in February 2022, poverty-fighting nonprofit Oxfam México reported that the average platform worker earned 2,085 pesos per week after expenses – lower than the minimum wage in Mexico City at the time.

While delivery options such as Didi have proved popular choices for workers, earnings can be below minimum wage in major regions, such as Mexico City. (Edgar Negrete/Cuartoscuro)

Panamá stressed that Didi is now offering better commissions, guaranteed earnings per time worked, and loyalty programs to access cheaper fuel and credit. It has also piloted a driving school for women in Argentina, which it could introduce in Mexico in 2024. Mexico is currently the country with the lowest proportion of female Didi drivers.

In Didi’s delivery division, Daniel Serra said, a driver can earn 180% more than the minimum wage for those same hours, and they are now rolling out similar loyalty programs to access cheaper fuel. He said this had resulted in a 15% increase in the number of delivery drivers who use Didi as their primary platform.

Didi currently works with 79,000 restaurants across Latin America and has a team managing restaurant relations to expand its offering.

Food delivery services have expanded rapidly in Mexico since the pandemic, growing 38.6% in the last two years to reach 24.2% of mobile users, according to data from Trecone. While Didi must compete with six other companies in this space in Mexico, it has now gained a place in the top three, alongside Rappi and UberEats.

Didi drivers protesti — Recent years have seen increased levels of labor organization from DiDi workers. Here, a grou; of drivers protest against higher app fees, outside Didi offices in Mexico City. (Crisanta Espinosa Aguilar/Cuartoscuro)

Recent years have seen growing labor organization by gig economy workers and legal reforms in this area have been discussed in Congress.

Regarding this regulation of mobility platforms, Andrés Panamá said “There must be regulation that helps maintain security levels within the platforms, and regulation that creates the same opportunities for all players in the industry.”

With reports from Forbes and El Financiero

Formal employment in Mexico reached record high in October

By

MND Staff

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November 7, 2023

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950924_Polanco Construcciones-7_impreso FOTO MOISÉS PABLO CUARTOSCURO.COM — Formal jobs in the construction industry had the biggest year-on-year increase in October. (MOISÉS PABLO/CUARTOSCURO.COM)

A record high of more than 22.3 million people are currently employed in Mexico’s formal sector after over 173,000 new jobs were created in October, according to new data from the Mexican Social Security Institute (IMSS).

It was the fourth best October on record in terms of job creation, but the total number of positions added was down 16.7% compared to the same month of last year. Let’s take a closer look at the IMSS data.

Employees at a Ford Motor Company factory in Chihuahua. (Photo: Government of Mexico)

Formal employment hits a new record high

There were 22,302,690 formal sector workers registered with IMSS on Oct. 31. IMSS said that was the highest figure on record.

Of the 22.3 million employees, 86.1% had permanent jobs while the remaining 13.9% were in temporary positions.

A total of 929,794 formal sector jobs were created between January and October, of which just under three-quarters are permanent. IMSS noted that the figure exceeds the average for the past 10 years by 208,532 jobs, or 29%.

However, the number of jobs created this year is 6.7% lower than in the first 10 months of last year.

Maya Train workers — The construction industry showed the most job growth, partly spurred by government infrastructure projects like the Maya Train. (Elizabeth Ruiz/Cuartoscuro)

Job creation in October

IMSS reported that 173,257 formal sector jobs were created last month. Over 80% of those jobs – 140,489 – are permanent, with the remainder being temporary positions.

While the total number of jobs created last month was almost 17% lower than in October 2022, the number of new permanent positions declined just 1.2% on an annual basis.

Which sectors added the most jobs over the past year?

The total number of IMSS-affiliated workers in the construction industry increased 9% in the period October 2022-October 2023, the highest increase of any sector.

Public and private sector projects, including ones related to the nearshoring phenomenon, have helped spur activity in the construction sector.

IMSS also reported year-over-year employment increases in the following sectors:

Transport and communications (5.5%)
Commerce/retail (3.9%)
Company services (3.6%)
Social and community services (2.4%)
Electricity (1.8%)
Manufacturing (1.2%)

Year-over-year employment decreases of 2.3% were recorded in both the agricultural and mining sectors.

Agricultural employment saw a year-over-year decline of 2.3% last month. (Secretaría de Trabajo)

Which states performed best in terms of job creation?

The total number of formal sector jobs in Nayarit rose 7.4% over the past year, the highest increase among Mexico’s 32 federal entities.

Quintana Roo, home to tourism hotspots such as Cancún and Playa del Carmen, ranked second with a 7.2% annual increase in job numbers. Rounding out the top five were Chiapas (5.5%); Querétaro (4.9%); and Hidalgo (4.8%).

Tamaulipas was the only state where total formal sector jobs declined over the past 12 months. The drop was minimal – just 0.2%.

In Mexico City, formal sector job growth was 2.4%.

Kostal plant in Querétaro — Querétaro was one of the top five states in formal sector employment growth last month. The state has seen a steady amount of industrial investment this year, including this Kostal plant (Gob QRO/X)

How much do formal sector workers earn on average?

At the end of October, the average base daily salary of workers affiliated with IMSS was 531.5 pesos (about US $30 at today’s exchange rate). Based on a 30-day month, the average monthly salary is 15,945 pesos (US $913) before taxes and excluding benefits.

IMSS said that salaries have increased by 10.8% over the past 12 months, and noted that wages have gone up by more than 6% every year since 2019, the first full year of the current government.

Expert views

Willebaldo Gómez Zuppa, an academic who researches labor issues, said that one possible reason why job creation in October wasn’t as strong as in the same month of 2022 is that the economy was still in the pandemic recovery phase a year ago.

He said that a “slight economic slowdown” may have also stymied stronger job growth last month. Gómez said he expected job numbers to improve in the final two months of the year as the economy gets a boost from end-of-year spending.

However, the director of economic analysis at Banco Base, Gabriela Siller, anticipates that the number of formal sector positions will significantly decline in December, a month in which many employers lay off workers.

“Considering the historical seasonal variation [of demand for workers] … in the final two months of the year, the creation of 152,637 work positions is expected in November and the elimination of 346,272 positions is expected in December,” she wrote on X, formerly Twitter.

“As a result, [a total of] 736,158 jobs would be created in 2023,” Siller said.

Suburbia store — Employment in retail and commerce was up 3.9% over October 2022. (Archive)

That figure would be lower than those recorded in both 2021 and 2022, the newspaper El Financiero reported.

Alberto Alesi, the general director of staffing company ManpowerGroup in Mexico, noted that 2021, 2022 and 2023 have been among the best years of the past decade in terms of job creation in the first 10 months of the year. Figures were above 900,000 in all three years, and very close to 1 million in the past two.

“We hope that hiring trends in Mexico don’t change given that one million jobs need to be created annually to satisfy the demand [for jobs] from young people who enter the labor market,” he said.

With reports from El Financiero

Guanajuato food festival shines spotlight on native ingredients

By

MND Staff

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November 7, 2023

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Garambullo ice cream — Garambullo cactus fruits are one of the native ingredients that will be highlighted by six acclaimed chefs participating in the festival. (Wikimedia Commons)

Six award-winning chefs from all corners of Mexico will bring new flavors to the state of Guanajuato’s food scene during this weekend’s Endémico Festival.

Organized by the Guanajuato Tourism Ministry (Sectur), the festival takes over the best restaurants of San Miguel de Allende, León and Guanajuato on Nov. 10 and 11. For these two nights only, the participating chefs will create special dishes featuring endemic, or native, ingredients and dishes such as prickly pear cactus fruit, pasilla chili peppers, huitlacoche, cecina and of course, tequila and mezcal.

Juan José Álvarez Brunel and others. — Guanajuato Tourism Minister Juan José Álvarez Brunel (center) with culinary industry figures at the October 25 announcement of the event. (Gobierno del Estado de Guanajuato)

“During Endémico, we will show off our roots and new culinary ideas, sharing both with the invited chefs and our renowned host chefs,” Tourism Minister Juan José Álvarez Brunel said.

Invited chefs hail from nationally and internationally recognized restaurants, including Corazón de Tierra in Ensenada and Arca in Tulum. Each night of the festival is expected to offer a completely unique dining experience, as chefs will alternate kitchens and cities.

When and where is the festival?

The Endémico Festival runs from Friday, Nov. 10 through Saturday, Nov. 11.

Festival flier. — The culinary festival will take place in the cities of León, San Miguel de Allende, and Guanajuato. (Gobierno del Estado de Guanajuato)

Participating restaurants include Trattoria Terraza, Amatxi, Comedor Tradicional Hotel Alonso 10 and Hotel Villa María Cristina, in Guanajuato city; Casa Biznaga, La Vaca Argentina, María Luisa and Argentilia, in León; and Selina Rooftop, Florios, Maura Mesa de Sal Hotel Numu and Amatte Hotel, in San Miguel de Allende.

Which Guanajuato ingredients will chefs highlight?

Some of the featured ingredients that are locally grown or cultivated include: pasilla chilis, strawberries, nopal (cactus), xoconostle (prickly pear cactus fruit), escamoles (ant caviar), agave, huitlacoche (corn smut), chilcuague (gold root), garambullo (bilberry cactus fruit) and cajeta (goat’s milk caramel).

How can I attend?

San Miguel de Allende panorama — Amatte Hotel, Numu Boutique Hotel, Florios and Selina Rooftop are the San Miguel restaurants that will host Endémico. (Shutterstock)

Each restaurant will offer a unique gastronomic experience and menus will vary according to the chef.

To attend the festival, reserve a ticket in person at any of the aforementioned restaurants. The tasting menu includes four courses and a drink pairing. Dinner seating begins at 7 p.m. and tickets cost 999 pesos per diner.

Mexico News Daily

Dear Acapulco, we will see you recover!

By

Henrietta Weekes

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November 7, 2023

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31. Acapulco nightlife, teeming with clubs, bars and restaurants. — A love letter to Acapulco in the wake of the devastation caused by Hurricane Otis, through images that capture its iconic history and beauty.

Back in the 1950’s, Acapulco was known as the beach resort where Hollywood royalty escaped, reveling by night in glitzy nightclubs like Tequila a Go-Go. Elizabeth Taylor married Mike Todd there, JFK and Jackie O honeymooned, Elvis and Rita Hayworth made movies, and John Wayne and Carey Grant owned Los Flamingos, where Frank Sinatra crooned.

During the 1960s and 1970s new hotel resorts meant the foreign and Mexican middle class could afford to travel and vacation there, and the population, tourism and economy soared. More recently, Acapulco has continued to thrive as a beach destination and has reclaimed its iconic status as a hotspot for A-lister celebrities. When the city was devastated by Hurricane Pauline in 1997, it recovered and bloomed again. We know that Acapulco’s community is resilient.

The famous Acapulco skyline (Credit: Civilian Scrabble, Flickr)

This photo essay aims to capture some of the glamour, style, magic and history of this treasured Mexican resort and here at MND, we encourage our readers to pitch in with the recovery effort to aid Acapulco and the state of Guerrero in its hour of need.

Acapulco Bay, 1930’s (Source; API Acapulco Port, Flickr)

Jennifer Lopez alongside Reggaeton artists Wisin Y Yandel, shooting video in Acapulco (Cut the Cap Music Magazine)

Quebrada cliff divers, 1960’s (Credit: Fotolia, Vilant)

Eisenhower’s first visit 1959 (Credit: LIFE Mag)

Entrance to the modern beauty, Encanto Hotel. (Wikimedia Commons)

Fishing boats in the bay, Acapulco (Wikimedia Commons, jimmyweee)

Henrietta Weekes is a writer, editor, actor and narrator. She divides her time between San Miguel de Allende, New York and Oxford, UK.

Héctor Esrawe, the Mexican designer you need to watch

By

Montserrat Castro

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November 7, 2023

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Captura de pantalla 2023-11-07 a las 11.40.44 a.m. — Héctor Esrawe: a Mexico City based industrial designer that fuses furniture, interior architecture and museography into his design. (Alejandro Ramírez Orozco)

Héctor Esrawe is a Mexico City based industrial designer who fuses different trades into his design. His products range from furniture to interior architecture and museography, all created under a multidisciplinary dialogue that he has passed on to his design studio – Esrawe Estudio.

Multidisciplinarity, Esrawe Estudio and Héctor’s philosophy

Héctor Esrawe (Alejandro Ramírez Orozco)

Héctor founded Esrawe Estudio in 2003 and has operated it for almost 20 years now. Esrawe describes their design pedagogy as a “living process of dialogue, linking the users with their surroundings. It is all about feeling the evolution of design, which stems from an understanding of basic physical and emotional needs of a given moment, and in each context.”

Primarily, Esrawe Estudio is a multidisciplinary practice, fusing artisans, designers, architects, and artists together to develop furniture, interior design, exhibitions, museography, and other architectural solutions.

This seems to be what moves Héctor: being able to wander into different disciplines and stay awhile, finding spaces that can do more than simply add knowledge to his portfolio. Spaces that will stimulate his creative curiosity and nurture his work, consequently nurturing the world of design.

Héctor didn’t always know his study would be multidisciplinary but says industrial design is nothing without all of its parts. “In some ways, they are elements of curiosity that materialized and became tangible when I decided to study design. Almost a year before starting I didn’t know what I wanted to study … I found a profession that somehow incorporates all these different activities and has the possibility of visiting them all,” he explained.

Solsticio XL -XXXL. Brass with patina finish, blued steel or natural aluminum. (Alejandro Ramírez Orozco)

Variety of projects

Héctor’s creative restlessness and love for the chameleon-like nature of industrial design have led him to become involved in a variety of projects, such as design houses EWE, MASA, and VISSIO. These three aim to give a platform to Mexican collectible design. He is also a part of Xinú, a perfume brand, and Casa del Agua, which collects rainwater and filters it into alkaline drinkable water.

He described his participation in multiple projects as “discovering new muscles as I go.”

Héctor remembers when he was 18 years old and first dipped his toes into the world of industrial design. As he began to develop his creative and intellectual ambitions, he realized he was hungry for exploration.

“It’s like I opened an umbrella towards the areas that I would like to explore and these projects do that. I’ll be a businessman with Xinú. I’m an interior architect in my studio. I will explore and visit collectible editions with EWE and my limited edition collection. I’ll promote art with MASA,” he listed. “This way I come full circle from that 18 or 17-year-old kid who had the curiosity to explore all these fields, right?”

Teaching and good relationships

Héctor studied industrial design at the Universidad Iberoamericana and graduated in 1992. Five years later, he returned to be part of the faculty as a design professor. He taught from 1997 to 2003 and then became a part of CENTRO University as Design Director. He speaks positively about his time as a teacher and describes his relationship with his students.

“I broke the traditional classroom scheme… I’d bring in different people to the class, administrators, artists, and people I admire. So that [my students] would see that there was a world outside of design and that the design sector had to understand the different patterns in different professions and minds.”

He stopped teaching once his son was born, but nowadays he still teaches workshops and speaks at conferences.

When discussing feelings of success in his career, Héctor talks about the importance of the people he surrounded himself with as he first embarked on his professional career.

“I have been very fortunate about the people I have encountered along the way in my creative path. On a creativity level, at a learning level, at a mental level, and even in understanding what I did not want to do,” he explained.

Gear side table. Cast polished bronze or cast aluminum with patina finish. (Alejandro Ramírez Orozco)

First career steps and Mexican identity

Growing up in Mexico has influenced the way he understands the world of design and his work within it immensely. Aside from the highly stimulating Mexico City, which he called his “emotional axis” and his “creative platform,” Héctor is drawn to the craftsmanship and mastery of Mexican artisans.

“This is where my work has located itself,” he explained. “With this admiration towards artisan dexterity and the understanding of generating new languages and new possibilities. (…) With the profound heritage we have, and profound I mean not only in the level of what we recognize, what is seen and sometimes even a little stereotyped.”

“There is a dexterity and artistic depth that we still have much to learn from,” he said.

After graduating from UIA, he founded a small design firm called DIMO alongside a friend.

“It was one of the first Mexican high-design stores. (…) It had a special dynamic because people weren’t used to consuming design, especially not Mexican design. There was a series of judgments around what could be done or what could be achieved,” he said. “There was an ignorance, in some cases even a dislike or disdain for things that were made here.”

When asked how Mexican identity fits within his work, Héctor answered: “What I do is Mexican because a Mexican does it. I’m not looking to indulge in the expected expression of mexicanidad which comes from a stereotype. For me, what I take from mexicanidad has to do with the techniques I use, the material, the trade, and the dexterity. I search to transform the expression and to generate new possibilities that stem from those characteristics.”

Héctor’s pride and legacy

Recently, Héctor has transitioned towards limited edition collections. These works are what he is most proud of at the moment, and he enjoys the change of pace. “I wanted to focus on closer contact, changing the velocity in doing things more one-on-one, more personal,” he said, underscoring his need to connect with his design on a more intimate level.

Thanks to this creative shift, he recently signed a contract with a New York gallery to exhibit his limited collection in March. He intimated that it’s especially exciting as it’s a gallery that was on his list of places where he “one day aspired to exhibit his work.”

“I’ll tell you how it goes!” he told us excitedly.

When it comes to his legacy, Héctor seems unbothered. “I honestly don’t have that ambition,” he said. “I think the challenge I had when I was an 18-year-old kid was I didn’t understand why we got design from all over the world but there was no Mexican design in the world. And my goal was to… put the voice of Mexican design out there. I think it’s [a goal] that will always continue to be. … It’s not my epitaph, and it’s not what defines me, really.”

“Maybe what defines me is perseverance, the non-conformism, the not assuming. But I don’t have the ambition to be remembered. My ambition is to keep opening that door, and the excitement of what I’m doing while I’m alive,” he concluded.

Montserrat Castro Gómez is a freelance writer and translator from Querétaro, México.

Samuel García to tour Mexico in presidential ‘pre-campaign’

By

MND Staff

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November 7, 2023

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Garciapodium_850 — Samuel García's request for leave from his position as Nuevo León governor was approved in late October, and he says he will formally register for the 2024 nomination on Sunday. (Samuel García/X)

Nuevo León Governor Samuel García said Monday that he will formally register his intention to seek the 2024 presidential election nomination of the Citizens Movement (MC) party this Sunday.

Speaking to reporters in Guadalajara, García also said he was considering launching his presidential “pre-campaign” in the Jalisco capital, where fellow MC Governor Enrique Alfaro is in office.

Samuel García and Enrique Alfaro — Governor of Jalisco Enrique Alfaro (left) with Samuel García at the former’s fifth annual report in Guadalajara. (Samuel García/X)

He said that Alfaro – who presented his fifth annual report on Monday – gave him “the great idea” of launching his pre-campaign in Guadalajara on Nov. 20.

“I’m going to speak with [Guadalajara mayor and gubernatorial aspirant] Pablo Lemus and the [MC] team in Jalisco to see whether we’ll decide to open the presidential pre-campaign here in Guadalajara,” the governor said.

García, whose request to take six months leave as governor to contest the presidential election was approved by Congress in late October, said he didn’t know whether former foreign affairs minister Marcelo Ebrard intended to seek the MC presidential candidacy. Ebrard finished second to Claudia Sheinbaum in the ruling Morena party’s candidate selection process, and was recently cited as an “external” option for MC by MC leader Dante Delgado.

“I don’t know what Marcelo’s going to do. … The idea is that I’m going to register as the sole pre-candidate and then tour all of Mexico” García said.

The runner-up in the contest to represent Morena in 2024, Marcelo Ebrard, may decide to compete against García for the Citizens Movement nomination. (Gob MX)

“Mexico is many Mexicos. I want to get to know the country, find out what is needed and contribute all we have from our experience in Nuevo León for a new Mexico,” he said.

If he succeeds in securing the MC nomination, García will face off against Sheinbaum and Senator Xóchitl Gálvez, candidate for the Broad Front for Mexico opposition bloc, at the 2024 election.

Poll results currently indicate that Sheinbaum will win the June 2, 2024 election, but both Gálvez and the Nuevo León governor have expressed confidence that they have what it takes to win over the Mexican people.

“Soon, very soon, I will be the favorite candidate of Mexicans,” García said in an X post directed to Gálvez last Friday. “This is just starting,” he added.

With reports from Reforma