EL PASO, Texas (Border Report) – Economists at the University of Texas at El Paso report that El Paso and Las Cruces, New Mexico generated 7,200 new jobs during the first four months of 2025 thanks to a strong services industry.
But across the border in Juarez, Mexico, maquiladoras laid off thousands, contributing to a 10,600-job loss during that period, according to the latest Paso del Norte Economic Indicator Review published by UTEP’s Hunt Institute for Global Development.
It is the 19th consecutive month that Juarez – where U.S. run manufacturing plants employ 261,000 and fuel economic activity in El Paso trucking, warehousing and logistics companies – loses jobs.
Another 10,000 people could be out of jobs south of the border in the next month, as several manufacturers have announced relocation plans, the UTEP economists report citing sources in Mexico.
Marcelo Vasquez Tovar, the regional director of the Mexican Importers and Exporters Association in Juarez, said the threat of U.S. tariffs is prompting manufacturers to streamline their production processes. He said production of assembled goods and parts has increased even as factories cut jobs because many are turning to automation.
“Maquiladoras are losing jobs due to uncertainty of U.S. tariffs. To compensate costs, maquiladoras became more efficient. What happened? They reduced personnel, improved processes and automated many operations,” Vasquez said.
Juarez has lost 65,000 jobs in the past two years, also in part due to rising wages. Despite that, maquiladoras have boosted their exports to the U.S., he said.
That, in turn, is leading to a slight increase in some manufacturing, transportation and related jobs in El Paso, he said.
As far as the thousands now unemployed, Vasquez said Mexican officials are working to develop more industrial areas in Juarez – particularly in the San Jeronimo, Mexico-Santa Teresa, New Mexico area – and coming up with tax incentives in areas that need to create jobs quickly.
“The government of Chihuahua also has been trying to attract more businesses to the city. Despite the tariffs and despite the wages, it is still advantageous to businesses to relocate here,’ Vasquez said.
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