A stark contrast exists between job growth on the US side of the border and decline in Mexico’s maquiladora sector. Economists at the University of Texas at El Paso report that El Paso and Las Cruces, New Mexico generated a significant 7,200 new jobs during the first four months of 2025 due to a strong services industry.
However, across the border in Juarez, Mexico, thousands of workers have been laid off as maquiladoras struggle with uncertainty caused by US tariffs. According to the Paso del Norte Economic Indicator Review published by UTEP’s Hunt Institute for Global Development, Juarez has lost 10,600 jobs during this period, marking the 19th consecutive month of job losses in the region.
US-run manufacturing plants employ over 261,000 workers in Juarez, fueling economic activity in El Paso’s trucking, warehousing, and logistics sectors. However, several manufacturers have announced relocation plans, which could result in an additional 10,000 job losses in the next month, according to UTEP economists.
Regional director of the Mexican Importers and Exporters Association in Juarez, Marcelo Vasquez Tovar, attributes the layoffs to the threat of US tariffs. To compensate for costs, maquiladoras have become more efficient by reducing personnel, improving processes, and automating many operations.
Despite losing 65,000 jobs in the past two years, partly due to rising wages, maquiladoras have boosted their exports to the US. This has led to a slight increase in some manufacturing, transportation, and related jobs in El Paso, according to Vasquez.
Mexican officials are working to develop more industrial areas in Juarez, particularly in the San Jeronimo area, and implementing tax incentives to create jobs quickly. The government of Chihuahua is also trying to attract businesses to the city, despite the challenges posed by tariffs and rising wages.
Source: Border Report
