Introduction to the Labor Market in 2025
In 2025, the labor market showed a concerning trend with one million new jobs created, but all in the informal sector and predominantly taken by men. The National Institute of Statistics and Geography (Inegi) reported that a total of 1,057,970 positions were generated, with 99.6% occupied by males.
Formal vs Informal Employment
While the unemployment rate remained low at 2.4%, there was a significant shift towards more precarious employment conditions, with a notable gender imbalance. The informal labor rate increased from 53.7% to 54.6%, affecting 32,988,763 individuals.
Labor Participation and Unemployment
The labor force participation rate was 59.1% in December, slightly below the 59.4% reported for the same month in the previous year. The extended unemployment rate, which includes inactive individuals available to work if given the opportunity, decreased from 10.4% to 10.1% throughout 2025.
Gender Disparity in Job Creation
According to Janeth Quiroz, Director of Economic Analysis at Grupo Monex, the data indicates a gradual moderation in the labor market, aligning with the reported weakening of economic activity.
- Question: A million informal jobs were created, all predominantly taken by men.
- Question: The unemployment rate remained low at 2.4%.
- Question: The labor force participation rate was 59.1%.
- Question: The extended unemployment rate decreased from 10.4% to 10.1%.
Sector-wise Job Creation Analysis
The job creation scenario in 2025 was mixed, with a loss of positions in industrial activities. The service sector saw a positive balance of 735,564 jobs, driven by advancements in commerce (852,074 positions) and restaurants/hotels (353,035 positions).
However, other service activities reported job losses, led by social services (-300,084 positions). Agricultural activities contributed with 500,652 new jobs.
The secondary sector was the only one with a negative annual balance, losing 153,132 jobs, mainly in manufacturing (-237,652 positions). Construction and mining sectors showed positive growth with 74,208 and 10,312 jobs, respectively.
Future Outlook for the Labor Market
Janeth Quiroz anticipates that the labor market in 2026 will face a more fragile environment, with reduced job creation and increased pressure on employment quality (informality and critical working conditions). Additionally, the rise in the minimum wage may pose challenges for businesses, particularly those with labor-intensive activities.
