2. Copyright©2009 Juan B. Morales1 WMTA April 2009 Juan B. Morales de la Garza MBA CCP RUIZ-MORALES & ASSOCIATES April 15 th 2009 Tel :(01152664) 686-4116 Fax: (01152664) 686-1998 Email: ruizmorales@prodigy.net.mx www.ruiz-morales.com.mx 2009 Labor & Economic Indicators

3. Copyright©2009 Juan B. Morales2 PRESENTATION OBJECTIVES 1.0 Labor Indicators. 2.0 Economic Indicators 3.0 Revised Projections for 2009

4. Copyright©2009 Juan B. Morales3 1.0 EMPLOYMENT INDICATORS Tijuana Maquila Turnover continues to Decrease 2007  8.0% Avg. Turnover 2008  5.3% Avg. Turnover 2009  3.4% February (Preliminary) 2009  3.4% February (Preliminary)

5. Copyright©2009 Juan B. Morales4 1.0 EMPLOYMENT INDICATORS Tijuana Non Maquila Turnover Decreases 2007  6.4% Avg. Turnover 2008  6.9% Avg. Turnover 2009  3.3% February (Preliminary) 2009  3.3% February (Preliminary)

6. Copyright©2009 Juan B. Morales5 1.0 EMPLOYMENT INDICATORS Tecate Maquila Turnover continues to Decrease 2007  7.1% Avg. Turnover 2008  5.1% Avg. Turnover 2009  3.5% February (Preliminary) 2009  3.5% February (Preliminary)

7. Copyright©2009 Juan B. Morales6 1.0 EMPLOYMENT INDICATORS Ensenada Maquila Turnover continues to Decrease 2007  7.3% Avg. Turnover 2008  3.5% Avg. Turnover 2009  1.9% February (Preliminary) 2009  1.9% February (Preliminary)

8. Copyright©2009 Juan B. Morales7 1.0 EMPLOYMENT INDICATORS Tijuana Maquila Absenteeism Decreases

9. Copyright©2009 Juan B. Morales8 1.0 EMPLOYMENT INDICATORS BC Unemployment vs Border States & National

10. Copyright©2009 Juan B. Morales9 2.0 Economic Indicators Tijuana’s Inflation Higher than last Year.

11. Copyright©2009 Juan B. Morales10 2.0 Economic Indicators Tijuana’s Inflation Higher than last Year.

12. Copyright©2009 Juan B. Morales11 3.0 Bottom in Sight ?? 3.0 Companies are more Proactive

13. Copyright©2009 Juan B. Morales12 3.0 Revised Projections 2009 March 15th - 2009 Growth 2008  1.3% Growth 2009  -5.0 & -3.0% (2.5% Sept. 2008 Projection) Xchg Rate at the close of 2009 Between 12.50 - 15.50 Inflation 2008  6.53% (Initial Inflation Projections for 2008 were 3.25 - 4.0% ) Inflation 2009  4.0 – 6.0% (Tijuana Higher) Increase in the Legal Minimum Wage for 2008  4.0% Legal Minimum Wage Increase for 2009  4.6% ( Zone –A- 4.2%) ** Maquiladora Increases have been higher than the Increases in the Legal Minimum Wage based on Supply and Demand. ** For 2008 Annualized (Sept. 2007 to Sept. 2008) Increases for Directs Averaged 6.3%, while the Minimum Wage Increased 4.0% during that period. ** For 2009 Projected Annualized Wage & Salary increases between 5.2% and 5.7%

14. Copyright©2009 Juan B. Morales13 Thank You ! Questions ?