HUMAN RESOURCES

Human Resources: The Labor Market in Mexico

Table of Contents

Introduction3

Discussion & Analyses3

Mexican Labor Law3

The Recent Recession and Informality in the Mexican Labor Market4

Managing the Mexican Human Resource5

Conclusions9

References11

Human Resources: The Labor Market in Mexico

Introduction

This discussion will present an analysis of the Labor Market in Mexico from a human resource perspective. In order to do so adequately, the paper will cover a variety of areas that pertain to the Labor Market in Mexico and shed light on the characteristics of the Mexican Labor Market that merit the reorganization of a role and relevance in Mexican Labor Market. The paper will give special attention to the discussion of the subject area as applied to/in the hospitality industry.

Discussion & Analyses

Mexican Labor Law

In order to acquire a thorough understanding of the human resource management dynamics that are of significance in the case of the Mexican labor market, it is imperative to acquire an insight into the Mexican labor laws that influence the Mexican human resource (Gentsch & Massey, 2011; Luthra & Waldinger, 2010). Regulations that govern the Mexican labor market are driven through the constitutional backing of the Mexican Federal Labor Law. The Mexican Federal Labor Law is known for giving attention to the safety of employees in the work environment on account of the fact that a majority of the jobs in the country demand the physical utilization of labor (Luthra & Waldinger, 2008; Everett, Rogers, Hummer & Krueger, 2011). In addition, the Mexican Federal Labor Law also favors employee unionization in the workplace; a majority of which have evolved into territorial bodies on account of the requirement of the Mexican Federal Labor Law that obligates the management of the organization to establish relationships with no more than one employee union (Donato, Wakabayashi, Hakimzadeh & Armenta, 2008; Mehta & Villarreal, 2008).

The Recent Recession and Informality in the Mexican Labor Market

A discussion of the Mexican labor market is incomplete without dedicating a section of the discussion on the implications of the latest economic recession on the Mexican labor market (Mehta & Villarreal, 2008; Malpica, 2008). The recent recession has had a negative impact on the global tourism and hospitality industry and the Mexican hospitality industry has also suffered the negative implications. As the wage rate in Mexico has reached a new low, Mexican workers are forced to look for alternative jobs and second jobs in order to make ends meet (Villarreal & Shin, 2008; Gentsch & Massey, 2011). This has created complications for employers who have observed a deficiency in employee engagement and an increase in potential employee turnover. Furthermore, skilled employees in the Mexican labor market are looking for jobs that give them increased level of flexibility and have therefore begun to avoid jobs in corporate entities that obligate employees to work solely for them. In essence, moon lighting has become a country-wide trend in the Mexican labor market (Luthra & Waldinger, 2010; Luthra & Waldinger, 2008). For instance, employees' demand to be given more flexible shift timings is a challenge that is ...