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Mexican Presidential Aide Sees 600,000 New Jobs In 2006

MEXICO CITY -(Dow Jones)- A chief aide to Mexican President Vicente Fox said Tuesday that the government's economic growth estimate for this year of 3.6% to 3.7% should translate into the creation of about 600,000 new jobs.

Eduardo Sojo, who heads the presidential office of public policy, said the rule of thumb that every percentage point increase in gross domestic product leads to about 100,000 jobs in the formal economy hasn't worked out in recent years.

He noted that with GDP growth last year expected at 3%, 576,000 more workers were registered with the Mexican Social Security Institute.

Growth is being generated in labor intensive activities such as commerce and services, "so our expectation is that in 2006 it will translate into about 600,000 jobs," he said.

Sojo reiterated that the lack of reforms in areas such as energy and labor laws have been the main drag on growth in the current administration, rather than slower than expected growth in the U.S.

"The fault of the lack of growth lies in Mexico, I would say in the Congress," he said.

The official added that the Fox administration, which ends its six-year term in December, will continue to push for reforms throughout 2006.

He said that it's more likely Congress could pass reforms, a number of which are politically sensitive, after the July 2 elections during the period of transition when Fox's successor will be known.

July voting will also be for members of the lower house of Congress and the Senate, where since 1997 no one party has held a majority.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5080-3450; anthony.harrup@dowjones.com



(END) Dow Jones Newswires

January 24, 2006 10:15 ET (15:15 GMT)