Overview of the Situation
In May, Mexico’s formal employment experienced a significant decline of 45,624 jobs, marking the worst single-month drop for May without considering the Covid-19 pandemic, according to the Instituto Mexicano del Seguro Social (IMSS).
Key Factors Contributing to the Decline
- Seasonal Impact: The IMSS attributes this decline to the seasonal nature of May, where the agricultural sector experiences substantial drops due to its cyclical nature.
- Previous Month’s Performance: April also reported negative employment numbers, with 47,442 job cancellations.
Yearly Employment Trends
As of May 2025, the creation of jobs stands at 133,665 positions, which is 58.8% lower than the same period in 2024.
As of May 31, 2025, the IMSS records 22,372,044 jobs. Of these, 87.2% are permanent positions and 12.8% are temporary.
States and Sectors Affected
Twenty federal entities are now reporting negative employment growth, with Campeche leading the list at -9.1%, followed by Tabasco (-7.1%), Zacatecas (-3.6%), and the Mexico City at -0.8%.
- Construction Sector: This sector has the largest negative impact, with -7.1%.
- Extractive Industry: This sector also reports a -5% decline.
Key Questions and Answers
- What does the 45,624 job loss signify? This represents the largest single-month decline in formal employment for May, excluding the Covid-19 pandemic period.
- Why is May a challenging month for employment? The IMSS points to the seasonal nature of May, particularly in the agricultural sector, which experiences significant drops due to its cyclical nature.
- How does the 2025 employment growth compare to 2024? Employment growth in 2025 is 58.8% lower than the same period in 2024.
- Which states are most affected by the job losses? Twenty federal entities report negative employment growth, with Campeche leading at -9.1%, followed by Tabasco (-7.1%), Zacatecas (-3.6%), and Mexico City at -0.8%.
- Which sectors are experiencing the most significant job losses? The construction sector (-7.1%) and extractive industry (-5%) are the hardest hit.
