Professional Employer Organizations in Mexico - Industry Market Research Report

Realer wages: Slowing inflation will return the industry to growth

Professional Employer Organizations in Mexico
Over the five years to 2019, revenue for the Professional Employer Organizations (PEOs) industry in Mexico has declined. High inflation has significantly tempered revenue growth in real terms, despite the fact that the industry has benefited from rising private investment, consumer spending and growth in the Mexican and US economies. Mexico's recent structural reforms and macroeconomic policies have encouraged economic growth despite uncertainty surrounding recent trade renegotiations. Growth in aggregate private investment has also helped contribute to rising demand for PEOs. Over the five years to 2024, inflation is anticipated to slow, resulting in real revenue growth for the industry. Structural reforms are anticipated to continue yielding economic growth, although reducing corruption remains a challenge for Mexico and poses a potential threat to the industry. This industry comprises establishments that provide personnel to organizations for a temporary, but indefinite, period of time. Industry operators are responsible for human resource management duties and employees perform work to client specifications. This industry excludes establishments that provide business administration, recruitment and placement services. It also excludes establishments that provide temporary employees via short-term contracts for specific periods of time. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.