Mexico’s Record Job Growth Dominated by Informal Sector in First Half of 2025

New data from Mexico’s official statistics agency (INEGI) reveals a record increase of roughly 850,000 jobs in the first half of 2025, but nearly all were informal—lacking official contracts and benefits.

Informal employment now makes up 54.9% of Mexico’s workforce, the highest proportion recorded. Behind this growth lies a significant decline in stable, formal employment, with over 278,000 fewer jobs offering secure pay and benefits.

Instead, self-employment surged by nearly 674,000 positions, reflecting economic pressures driving individuals toward informal, less secure work.

The loss of around 220,000 salaried positions underscores financial stress on businesses, reducing their ability to maintain formal payrolls. Although the official unemployment rate remains low at 2.7%, broader measures paint a more challenging picture.

Underemployment—people working fewer hours than they want—rose to 7.4%, and a wider measure of unemployment, including people loosely connected to the labor market, approached 10.3%.

This shift toward informal jobs poses serious risks. Workers without formal contracts lack protection against illness, job loss, or financial instability, weakening overall consumer purchasing power and economic stability.

For businesses and international investors, this trend indicates potential long-term economic fragility unless Mexico implements policies to strengthen formal employment sectors.

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