Key Sectors of the Economy Experience Significant Job Reductions
The least dynamic labor market in formal employment by May 2025 has two of Mexico’s three major economic sectors as its main protagonists: agriculture and industry. Combined, the payrolls of these sectors have shrunk by approximately 210,000 jobs over the past year, according to the latest monthly report from the Mexican Social Security Institute (IMSS).
Construction and Manufacturing Sectors Suffer the Most
- Construction: The workforce in the construction sector decreased by 132,519 individuals, from one million 728,574 to six million 6,297 in the past year.
- Manufacturing: The manufacturing sector’s workforce also declined by 60,581 individuals.
Agriculture Sector Also Experiences Job Losses
The agriculture sector saw 11,303 fewer jobs, with a total of 728,947 employees. Meanwhile, the extractive industries sector reported 6,495 fewer jobs.
Negative Trends in Sector Performance
The construction sector has experienced nine consecutive months of negative interannual comparisons, while the manufacturing sector has seen five such months. Although it accounts for a smaller portion of formal national employment compared to these two sectors, the agriculture sector has endured a weakening trend for 21 months with annual job losses.
Industrial Employment Decline Coincides with Industrial Activity Drop
The industrial employment decline coincides with a 0.2% drop in industrial activity during the first quarter of 2025, as reported by the National Institute of Statistics and Geography (Inegi)’s Monthly Index of Industrial Activity.
Agriculture Sector Loses Employment Momentum Despite GDP Growth
Interestingly, while the agriculture sector has lost employment momentum, the primary sector’s GDP experienced a notable trimester advance of 7.8%. It is worth mentioning that the total formal employment in Mexico’s economy grew by only 23,045 jobs in May 2025, equivalent to a 0.1% expansion – the lowest in 50 months.
Other Sectors Show Job Growth
The positive balance was achieved thanks to job creation in the following sectors: commerce (+128,853), services for individuals, businesses, and households (+62,198), transportation and communications (+22,224), social services and community (+17,792), and electricity (+2,876).
- Commerce: Added 128,853 jobs.
- Services for individuals, businesses, and households: Created 62,198 jobs.
- Transportation and communications: Generated 22,224 jobs.
- Social services and community: Produced 17,792 jobs.
- Electricity: Added 2,876 jobs.
These sectors collectively created 233,943 jobs.
Key Questions and Answers
- What sectors are most affected by job losses? The industrial and agricultural sectors have experienced significant job reductions, with construction and manufacturing being the hardest hit.
- How many jobs have been lost in these sectors? Approximately 210,000 jobs have been lost in the industrial and agricultural sectors combined.
- What is the current state of industrial activity in Mexico? Industrial activity in Mexico experienced a 0.2% drop during the first quarter of 2025.
- How does the agricultural sector perform amidst job losses? Despite losing employment momentum, the agricultural sector’s GDP has shown notable growth of 7.8% in the trimester.
- Which sectors have shown job growth? The commerce, services for individuals and businesses, transportation and communications, social services and community, and electricity sectors have all experienced job growth.
