Juárez Faces Labor Shift Amid Automation Surge
New analysis reveals rising wages, job losses in key sectors, and a move toward high-tech industries on the border.
A new study examines the evolving labor market in Ciudad Juárez, Mexico, a critical manufacturing center. The analysis pinpoints how automation and industry changes are reshaping the region’s economic landscape.
Key Findings on Employment
The Hunt Institute for Global Competitiveness at The University of Texas at El Paso (UTEP) released the white paper, “Employment Shifts in Ciudad Juárez: Beyond the Numbers,”
which highlights a 375% wage increase in Juárez between 2018 and 2025. Wages jumped from $88.36 to $419.88 Mexican pesos.
Manufacturing represented 63% of the city’s employment in 2024, more than double Mexico’s national average of 28%.
While Juárez added 38,000 jobs from 2019 to 2024, a net loss of 13,000 jobs occurred between 2023 and 2024, mainly due to a 17,500-job drop in manufacturing. Staffing Industry Analysts reports that contingent worker usage is up 10% over last year, as employers seek more flexibility (SIA 2024).
Expert Insights
“Our report explores how global disruptions, policy changes, and industry-specific developments are influencing formal employment patterns, investment decisions, and the region’s future as a strategic industrial center,”
said Executive Director of the Hunt Institute Mayra Maldonado, co-author of the paper.
Maldonado noted that rising labor costs are causing some industries to automate or shift to higher-value activities. “Rising labor costs, driven by government-mandated wage increases in the Northern Border Free Zone are prompting some labor-intensive industries to scale back or pivot toward automation and higher-value activities.”
Growth and Declines by Sector
Computer and medical equipment manufacturing expanded significantly. Computer manufacturing grew by 9,500 jobs (238%) between 2019 and 2024, and medical equipment jobs increased by 12,500 (41%).
Conversely, traditional sectors experienced job losses. The textile industry shed 8,000 jobs, and automotive electric systems lost 5,000 jobs during the same period.
Looking Ahead
“This report offers a data-driven perspective on the formal employment shifts taking place in Ciudad Juárez,”
Maldonado explained. The study analyzes employment data across 276 industries to help stakeholders understand the factors shaping labor demand and the region’s evolving industrial profile.
The study highlights Ciudad Juárez’s shift from low-cost labor to a technologically advanced industrial base. Policy changes affecting labor costs have influenced employment patterns, making the city less attractive to some investors who are relocating to central Mexico or Central America, according to Maldonado.
These changes present challenges and opportunities for manufacturers, investors, and policymakers as Ciudad Juárez adapts to the global landscape.
