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UTB-CBIRD Report: “At The Crossroads” Economic Development 105
Cameron County wage and salary employment trends for the 1990s indicate that
its overall employment increased at a compounded annual rate of 3.4%, making
it the 28 th fastest growing metropolitan area in the nation. During the early part
of the last decade, Cameron County enjoyed rapid employment growth thanks to
the area’s booming manufacturing sector.
In 1978, Cameron County’s manufacturing sector provided employment
opportunities to nearly 20% of area workers in private sector firms; however, by
2000, that share had fallen to just over 11%. After having generated nearly
2,000 manufacturing jobs between 1990 and 1994, Cameron County shed over
1,000 manufacturing jobs by 2000, Figure 5.10. During this latter part of the
decade, the local manufacturing sector posted job losses in all years, except
2000. The majority of those losses appear to have been a result of heavy
employment decreases in Textiles & Apparel, as both local and national
production has shifted to more inexpensive international labor markets. In short,
Cameron County, like the state and nation, will become less dependent on a
strong manufacturing sector for employment.
Mexico: At the Crossroads
Between 1991 and 2000, employment in Mexican maquiladora plants increased
at a compounded annual growth rate of 12%, during which time employment
grew from approximately 470,000 to 1.3 million, Figure 5.11. Since the end of
2000, however, maquiladora employment has decreased by approximately 10%.
Maquiladora plants located in Matamoros have not remained immune to these
losses. From the end of 2000 to the end of 2001, employment in local plants
fell 15%, a loss of 9,000 jobs.
Figure 5.11. Mequiladora Employment: Mexico and Matamoros
Mexican Maquiladora Employment (000s)
1991 to 2000
1,400
1,200
1,000
800
600
400
200
0
1991 1993 1995 1997 1999
Source: CNIME
Grow th Rate
Employment
While recent employment declines at maquiladora plants can be partially
attributable to the recession in the US economy, increased competition from
developing nations is a contributing factor. Of particular note is China’s
emergence as an industrial power and its role in the loss of competitive
advantage once held by Mexican maquiladoras. Chinese labor costs are
estimated to be only 10-15% of those in Mexico. In addition, China is providing
extraordinary incentives to attract foreign investment and companies located in
China do not confront strong labor union and social unrest, making the labor
force a more reliable production input. In short, China is undergoing a transition
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Matamoros Maquiladora Employment
2000 & 2001
60,000
58,000
56,000
54,000
52,000
50,000
48,000
46,000
44,000
'00-1 '00-2 '00-3 '00-4 '01-1 '01-2 '01-3 '01-4
Source: CNIME
One Region -- One Future