Positive Economic Indicators, but Job Creation Lags Behind
While several positive economic indicators have been reported in the first half of 2025, Mexico’s job creation remains a concern. Despite favorable conditions such as foreign investment, successful export management, controlled inflation, and a modest economic growth rate surpassing recession fears, the job creation sector has not kept pace with population needs.
Current Job Creation Statistics
Only 178,300 individuals have found employment so far this year, equating to a mere 737 daily additions. This figure represents just a quarter of Mexico’s job demand, highlighting the sluggish job market.
Recent Job Market Developments
On Monday, the National Institute of Statistics and Geography (Inegi) released an updated Employment and Occupation National Survey (ENOE), revealing a loss of 1.3 million jobs in August—the largest monthly decline since the pandemic’s impact on the labor market and economy. Consequently, unemployment rose to 2.9%, the highest level in a year.
Economic Analyst Perspectives
Janneth Quiroz Zamora, Monex’s Economic Analysis Director, notes that these figures indicate “a decrease in employment dynamism.” The expanded unemployment rate, including both unemployed and discouraged individuals who have stopped job hunting, reached 11.0%, the highest in a year. The labor gap, encompassing those working reduced hours but needing more time investment, hit 17.2% of the population—the highest figure so far in 2025.
Key Questions and Answers
- What causes the disconnect between foreign investment and job creation? There’s a question of what’s missing to translate incoming capital into formal, high-quality employment rather than just productivity gains or physical expansion.
- Is the goal of creating 1.5 million specialized manufacturing jobs realistic during the six-year term? Given the insufficient job creation and significant declines like August’s, there’s doubt about the government’s ability to fulfill this commitment.
- How do social programs affect the pursuit of formal employment? While resource transfers and scholarships support internal consumption, they may also discourage seeking formal jobs or increased working hours.
- What are the implications of proposed labor reforms on job creation? A 12% wage increase aims to reach 2.5 basic baskets, and a reduced workweek to 40 hours targets worker well-being. However, in low-growth and weak job creation environments, these measures could further hinder new job formation.
The Crucial Question
Mexico must establish a virtuous cycle linking economic growth with ample, dignified, and sufficient employment to meet population needs. Without this link, macroeconomic successes will remain distant from the daily lives of millions of working families.
