Mexico’s Job Market Faces September Setback

In September, Mexico’s job market faced a significant setback, losing 275,986 jobs, primarily in the informal sector. This marked the fifth month of negative growth in 2024, with informal employment accounting for 68% of the losses.

Despite this, the unemployment rate decreased slightly from 3.0% to 2.9%, due to a reduction of 81,000 unemployed individuals.

The Economically Active Population (PEA) also saw a decline of over 350,000 people. The informal employment rate saw a minor decrease from 54.3% to 54.2%, while formal employment lost 88,158 positions.

Gabriela Siller, Director of Economic and Financial Analysis at Baco Base, noted the persistent challenge of informality in Mexico’s labor market.

Subordinate work was the only category that grew, adding over 560,000 people, while independent work suffered the largest contraction with nearly 461,000 jobs lost.

Industrial activities were hit hardest, losing 456,181 positions, with manufacturing and construction sectors particularly affected—losing 239,517 and 147,643 jobs, respectively.

Overview of Mexico’s Labor Market in 2024

The primary sector, including agriculture, fishing, and livestock, lost 422,000 jobs, marking the largest decline so far in 2024. In contrast, the services sector provided a positive note by creating 693,000 jobs.

Growth was seen in various services, government employment, and transportation sectors; however, restaurant jobs experienced a negative balance. These figures highlight the complex dynamics of Mexico‘s labor market.

While there is progress towards formal employment, overall job losses remain concerning. The challenge lies in creating stable and quality jobs across diverse sectors.

To address these issues, collaboration between the government and private sector is essential. Policies promoting job creation and reducing informality are crucial.

Enhancing education and skills training could help align workers with available opportunities. As Mexico navigates these economic challenges, focusing on sustainable growth is vital.

This includes supporting industries with job creation potential and addressing factors contributing to job losses in struggling sectors.

The coming months will be critical for determining the future trajectory of Mexico’s labor market. Stakeholders must remain vigilant and responsive to these trends to achieve a more stable and prosperous job environment.

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