Jobs creation within the Mexican oil and gas industries requires new legislation, according to the country's president.

Felipe Calderon believes that widespread reform is needed to increase production and generate new employment opportunities, Reuters reports.

However, according to the news source, a political deadlock is placing plans by Mr Calderon to boost the energy industry and introduce a range of other stimulus measures at risk.

Proposed reforms include trial periods for workers and additional training schemes, but they have run up against opposition from unions.

The crude oil industry supports public finances, but the industry has witnessed a decline and is in need of investment, which requires legislation in order to attract private funds.

Mexico witnessed an increase in unemployment during July 2010, with the rate increasing from 5.1 per cent in June to 5.7 per cent, although it remained below a total of 6.1 per cent for the same month last year, figures from the nation's statistics agency have revealed.

Posted by Kate Griffin