Border States: Leaders in Job Creation in 2024 and Their Future Towards 2025

Mexico's border states have stood out in 2024 as key drivers of job creation, spurred by bilateral collaboration with the United States and the reconfiguration of global supply chains. States like Nuevo León, Baja California, and Chihuahua have solidified their positions as economic growth hubs, thanks to factors such as nearshoring, foreign direct investment (FDI), and a skilled workforce meeting the demands of high-tech industries.

Nuevo León: The Epicenter of Nearshoring

With the arrival of numerous international companies seeking to establish operations near the United States, Nuevo León has experienced a significant boom in job creation. In 2024, the state generated more than 150,000 new jobs, leading sectors such as automotive, advanced manufacturing, and information technology.

This growth represents a 45% increase compared to 2020, when the region was just beginning to recover from the effects of the pandemic. Monterrey's metropolitan area, in particular, has been the main recipient of investment, standing out for its modern infrastructure and connectivity to key U.S. markets. The United States-Mexico-Canada Agreement (USMCA) has also played a crucial role by strengthening trade ties and providing a stable legal framework for investors.

Baja California: Innovation and Manufacturing

Baja California, with its proximity to California and its industrial tradition, has maintained steady growth in job creation throughout 2024. The maquiladora industry remains a key pillar, particularly in sectors such as medical devices, electronics, and aerospace.

Between 2020 and 2024, Baja California saw a 38% increase in formal employment, growing from 900,000 to over 1.2 million registered workers. In Tijuana, the e-commerce boom has driven logistics and the development of distribution centers. Moreover, well-paid jobs in technology and design have been created thanks to startups capitalizing on Baja California's binational talent pool.

Chihuahua: Aerospace Sector Boom

Chihuahua, known for its leadership in aerospace manufacturing, has continued to expand its capabilities in 2024. The region recorded the creation of more than 80,000 jobs in high-value-added sectors. Comparatively, this represents a 50% growth in industrial employment since 2020, when the sector faced challenges related to supply chain disruptions.

Ciudad Juárez, additionally, has undergone a transformation in its industrial parks, adapting to the demands of industries such as electronics and automotive. The connectivity with El Paso, Texas, remains a strategic point for facilitating cross-border trade. In this context, bilateral collaboration has been key to improving border infrastructure and streamlining customs processes.

State Economies and Bilateral Policies

The economic development of border states is closely tied to their political and trade relationships with U.S. counterparts. The implementation of the USMCA has been a catalyst for ensuring that border states remain competitive against emerging markets.

For example, Nuevo León and Texas have strengthened their cooperation in energy and transportation initiatives, while Baja California and California have launched joint projects in renewable energy and environmental control. Chihuahua and New Mexico have also worked on shared infrastructure development, such as border crossings and efficient logistics systems.

These states have also implemented policies to promote technical education and workforce training, preparing the labor force to meet the demands of specialized sectors. Collaboration with binational universities and research centers has enabled companies to access skilled and competitive talent.

Challenges and Prospects for 2025

The future of these border states looks promising but will also face significant challenges. One major challenge is maintaining competitiveness against other emerging regions in Latin America and Asia. Infrastructure gaps in certain areas and the need to improve educational systems to align with labor market demands are also priority issues.

Sustainability will also be crucial in 2025. Companies in these regions are under pressure to adopt more environmentally friendly practices, which could increase short-term operating costs but also create opportunities in renewable energy and green technologies.

In the political sphere, collaboration between state and federal governments will be essential to ensure an environment that fosters investment and stability. Strengthening bilateral relations with the United States will also play a key role in attracting new companies and consolidating strategic projects.

Mexico's border states have positioned themselves as leaders in job creation in 2024, driven by nearshoring and close collaboration with the United States. With a focus on infrastructure, education, and sustainability, these regions have the potential to establish themselves as economic powerhouses by 2025, contributing not only to regional development but also to the strengthening of the bilateral economy. The statistics show impressive growth since 2020, confirming that these states are on the right track to lead economic development in the coming years.

Written by: Editorial