STPS Study Finds Mexico’s Outsourcing Curb Lifted Direct Hiring and Pay

Overview

• An STPS-backed analysis reports a 62% jump in direct manufacturing payrolls and a 53% drop in third‑party staffing since the 2021 reform.
• Total manufacturing employment ran 9% above pre‑pandemic averages, which the study says shows absorbed subcontracted workers did not replace new hiring.
• Workers moved onto company payrolls saw pay rise between 6% and 13% after the shift, reflecting clearer employment ties and full recognition of tenure and benefits.
• Under the new rules, outsourcing firms are confined to specialized services outside a client’s core business, narrowing the role of labor intermediaries.
• Across the economy, STPS says the number of outsourced workers fell from 4.1 million in 2018 to 438,000 in 2023.