Metropolitan growth and labor markets in Mexico

The objective of this paper is to examine the main changes in the metropolitan labor markets associated with economic restructuring in Mexico during the late 1980s and beginning of the 1990s. The analysis refers particularly to the four largest metropoles of the country, Mexico City, Guadalajara, Monterrey and Puebla, looking for common characteristics in their emergent employment structures now strongly differentiated in terms of rewards, stability in employment relations and conditions of access to jobs. The analysis reveals that largest metropolitan areas have been the most profoundly affected by the economic restructuring resulting from globalization, through a rapid de-industrialization and the expansion of the tertiary sector. Metropolitan labor markets in Mexico, at the time that show signs of social polarization in the formal sector, put in evidence a general process of precarization – less labor stability, replacement of permanent by part-time jobs, and increasing subcontracting –, segmentation of the labor force, and an increasing informal conditions of economic activities with small businesses and unskilled, temporarly and poorly paid jobs. The labor force segmentation and its more precarious and casual conditions are mostly explained by the impact of recent neoliberal policies, and recurrent economic crisis during the 1980s and 1990s which highly contributes to social inequality.