Background on the Situation
In Puebla, Mexico, the historic center is home to over 13,000 formal jobs. However, local businesses are facing challenges in meeting their goal of creating 1,100 new jobs by the end of 2025 due to low sales, particularly at the beginning of the year.
Who is José Juan Ayala Vázquez?
José Juan Ayala Vázquez is the leader of the Comerciantes del Centro Histórico council, representing businesses in Puebla’s historic center. His insights provide crucial context regarding the current economic situation and job market in this region.
Current Challenges
Ayala Vázquez explained that sales have not met expectations this year, hindering the businesses’ ability to hire more employees. Seasonal spikes in sales, such as during Mother’s Day or Children’s Day, have not been enough to support additional hiring.
At the end of last year, businesses were optimistic about 2025; however, unfavorable conditions have emerged, making it difficult to hire more staff. The situation worsened following the Easter vacations.
Currently, new hires are limited to warehouse areas, as sales remain robust. Unfortunately, the businesses have had to make further cuts due to unmet targets.
Impact of Informal Commerce
Puebla has approximately 70% informal commerce, which affects the formal job market. Ayala Vázquez emphasized that authorities must work towards regulatory improvements to encourage businesses to formalize and attract investments in the city and state.
While informal commerce generates economic activity, it also limits the growth and development of established businesses.
Recommendations for Improvement
Ayala Vázquez suggested that authorities should incentivize street vendors to transition into the formal sector while creating spaces for them without negatively impacting third parties or established businesses. This approach would prevent unfair competition.
Key Questions and Answers
- Q: What is the current job creation goal for Puebla’s historic center businesses? A: The goal is to create 1,100 new jobs by the end of 2025.
- Q: Why are businesses struggling to meet this goal? A: Low sales, particularly at the beginning of the year, have hindered their ability to hire more employees.
- Q: Who is José Juan Ayala Vázquez, and why is he relevant? A: José Juan Ayala Vázquez is the leader of the Comerciantes del Centro Histórico council, representing businesses in Puebla’s historic center. His insights provide crucial context regarding the current economic situation and job market in this region.
- Q: How does informal commerce affect formal job creation? A: Puebla’s 70% informal commerce sector impacts the formal job market, making it challenging for established businesses to grow and develop.
- Q: What recommendations has Ayala Vázquez provided for improvement? A: He suggested that authorities should incentivize street vendors to transition into the formal sector and create designated spaces for them without causing unfair competition.
