Labor pool & population
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Chihuahua Labor Pool POPULATION

  1. The Chihuahua is home to 825,327 people, which represents close to 25.46% of the State’s 3,241,444 inhabitants. This population is growing at a 2.4% annual rate, faster than the rest of the country which has a 1.8% annual growth rate. It is estimated that 55% of Chihuahua’s population is 21 years old or younger. (Source: Centro de Informacion y Estadistica del Estado (2004 INEGI - February 2008)

The Workforce

DEMOGRAPHIC IMPACT

  1. Chihuahua’s, like the rest of Mexico, has a young population. 40.4% of the population are under 20 years old (national average is 44.6%). The large percentage of the population under 20 years of age ensures that there will be a continuous number of people joining the workforce in the coming years.


 

LABOR AND EMPLOYMENT

  1. Chihuahua has an economically active population of 296,456 individuals, or 51.6% of the total population over 12 years old, though there is a big difference between the percentage of men and women that participate in productive activities: 67.1% of men are economically active while only 37.5% of women are part of the formal workforce. (2004 INEGI - February 2008)
  1. Currently there are over 43,347 people are employed in 79 maquiladoras in the city of Chihuahua. Both Ciudad Chihuahua and Ciudad Juarez are important maquiladora centers. The state of Chihuahua is the biggest maquiladora employer in the country industry, taking up almost 26% of the country’s maquila workforce.

  1. UNEMPLOYMENT AND SUB-EMPLOYMENT
  1. The official open unemployment rate in Chihuahua City is 3.7%, in line with 3.71% national rate for Mexico. The sub employment rate in the city is considerably lower than the national average rate of 22.65%. According to INEGI 14.3% of the economically active population works less than 35 hours per week. It is important to note that INEGI numbers show great variations from month to month and from year to year. It is estimated that 22% of all unemployed people have previously worked in the maquiladora industry. (Source: INEGI 2004) Note- the Mexican Government considers an employed person anyone who is 12 years old and over and who has worked one hour or one day during the reference week; sub-employment refers to a person that worked 35 hours or less).
  1. A key employment statistic is the number of workers for whom the employer pays social security taxes. Payment of this tax is a sign that the worker has a job in a well-established company. In the state of Chihuahua 627,384 workers, or 49.7% of the economically active population of 1,262,862 people receive this benefit. This percentage is one of the highest in the country.

 

SKILL LEVEL

  1. The National Employment Agency gives special attention to Chihuahua due to the skill level of its highly qualified labor force. In fact, the city’s workforce is one of the best in the country due to a variety of industrial processes and advanced technology that it is used in almost every plant. Evidence of the quality of the workforce is the type of industry established in the city. The main maquiladora plants in Chihuahua employ personnel in the following industries:

 

  1. EDUCATION AND TRAINING PROGRAMS

Wire Harnesses

37%

Electronic Components

22%

Automotive Parts

18%

Electric Appliances & Parts

9%

Apparel/Textile

6%

Injection Molding

3%

Other

5%

  1. The city of Chihuahua has 14 universities and more than 28 technical education institutions. Technical schools on the city offer degrees in programming, accounting, electricity, welding, electronics, machine tooling, instrumentation, and other disciplines relevant to the maquiladora industry. One branch of the most prestigious universities in Latin America, the “Tecnologico de Monterrey”, prepares some of the better engineers of the country. The city ranks among the top in the nation for level of education and R&D investment.
  1. Training programs offered by state government and educational institutions are flexible to the needs of industry. The state sponsors training programs that cover a worker’s minimum wage for a period of 60 days while in training.
  1. Undergraduate and graduate studies related to the industry
    Engineering in Aeronautic Industry
    Ph.D. in Advanced Materials
    Ph.D. in Sciences and Technological Environment
    Master in Education Science
    Master in Sciences and Technological Environment
    Master in Materials Science
  1. Knowledge area
    Composite materials, Electronical Microscopic, Structural Integrity, Polymers,
    Alloys, Finite Element Analysis, Chemical Analysis, X-ray diffraction, etc.
  1. Research & Development Centers
    • 4 Research and Development Design Center
    • Fuselage design, new advanced materials related to the industry.

  2. TURNOVER RATES
  1. The labor force in Chihuahua is more stable than in other regions along the border. Turnover rates are generally low, averaging 3-4%, a consequence of the relatively high salaries paid by the maquila plants and stable community dynamic.

The Operation

  1. WAGE RATES
  1. Wages are the key driver of Mexico’s manufacturing industry. It is, therefore, one of the first and most important topics any company expanding in Mexico will consider. TeamNAFTA touches on the overall wage issues in our Info Center, but we have also provided some sample wages for Chihuahua below. While we have access to more detailed wage information, we typically present that information in a tailored report addressing a company’s specific labor needs.

  1. Average hourly wages paid in Chihuahua: 2003 - 2008

U.S. dollars/hr. includes all mandatory and average optional benefits for this market

Unskilled Operator:

$2.39 Fewer than 6 months experience

Skilled Operator:

$2.75 Over 1 year of experience

Technician:

$5.84 Technical school training with 2 years experience

Engineer:

$14.68 Bachelor’s degree with at least 2 years experience

Source:  http://www.teamnafta.com/