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CBC The National Carmakers say adios to Canada as Mexico shifts into higher gear

Started by 136 or 142, August 13, 2015, 05:07:53 AM

136 or 142

http://www.cbc.ca/news/business/carmakers-say-adios-to-canada-as-mexico-shifts-into-higher-gear-1.3108148

I don't see this as all bad as the story claims.  The manufacturing jobs are being lost to Mexico, but a wealthier Mexico will make it more appealing to export there, which will increase jobs here.

This should also help to decrease the amount of illegal immigration into the U.S.  Taken together with the U.S legalizing marijuana, those two things should put a huge dent into illegal immigration. 

The story mentions there are something like nearly 700,000 auto manufacturing jobs in Mexico. That's not a huge number out of a Mexican population of nearly 125 million but, I don't know if that is just the manufacturing jobs, or if it includes the other corporate jobs in marketing, human resources and finance.  If it doesn't, and taking into account that all jobs provided through foreign investment create spin off jobs in support industries and in service sector jobs like restaurants you are looking at as much as maybe 3-5% of total Mexican employment here.

The story mentions that wages have risen no where nearly as quickly as productivity.  It makes me wonder what the status of unions are in Mexico. It would not surprise me that, while NAFTA guaranteed 'rights' for corporations, that no such guarantees were given to labor unions.

That said, we've seen in China a sharp rise in wages to the point where most simple assembly jobs have moved out of China and into lower cost countries in that region like Vietnam, Burma and even North Korea.

In regard to wages, while the story mentions that the manufacturing jobs are low paid, I would expect that the professional jobs in marketing, human resources and finance would be somewhat higher paid, and certainly the middle and line management jobs would be quite well paid.  I would expect that most of the senior executive positions would still be filled by people from Canada or the United States at this time, but if they live in Mexico, they are still spending their money there.

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