The cost of labor in the steel industry in Mexico increased 25.0 percent in the second quarter of the year. It is the first increase after six consecutive quarters (since 4Q2022) with a reduction in labor costs, according to SteelOrbis' analysis of data from the national statistics office Inegi.
The reported decrease refers to the basic iron and steel industry, which includes steel complexes and personnel employed in the manufacture of primary slabs and ferroalloys.
Considering only the second quarter of the year, 2024 is the second largest increase in nine years, only surpassed by the 25.8 percent of 2020 and the 35.0 percent of 2015.
In the first half of the year, labor costs increased 12.8 percent, compared to the same period in 2023.
In other industries, such as the manufacture of iron and steel products, labor costs decreased 2.4 percent in the second quarter, in the manufacture of metal structures and ironwork products it decreased 3.3 percent, and in the manufacture of forged and stamped metal products it decreased 11.9 percent.