Background on the Mexican Labor Market and its Challenges
Mexico’s labor market faces a significant challenge: formalizing nearly half of the current informal work positions. Despite efforts, the creation of formal jobs has been declining in recent years.
Current State of Formal Job Creation
As of October 2025, approximately 400,000 formal jobs have been created under the Instituto Mexicano del Seguro Social (IMSS), including both temporary and permanent positions. This figure represents a 32.6% decrease compared to the same period in the previous year.
IMSS Cotributions and Workforce
Despite the slowdown in formal job creation, as of October 2025, there are 22.7 million people contributing to the IMSS as workers. This is the second-highest number recorded since tracking began.
Who is Relevant and Why?
The Instituto Mexicano del Seguro Social (IMSS) is Mexico’s social security organization, responsible for administering pensions, healthcare, and other social programs. It plays a crucial role in tracking formal employment data in Mexico.
Understanding the current state of formal job creation is essential for evaluating Mexico’s economic health and its ability to provide social security benefits to its workforce.
Impact on Workers and the Economy
The decline in formal job creation affects both workers and the broader economy. Informal jobs often lack benefits such as healthcare, pension plans, and paid leave, leaving workers vulnerable during economic downturns or personal crises.
Moreover, the decrease in formal employment may indicate a weakening labor market, which can negatively impact government revenues from social security contributions and hinder long-term economic growth.
Key Questions and Answers
- What is the current situation regarding formal job creation in Mexico? By October 2025, around 400,000 formal jobs have been created under the IMSS, marking a 32.6% decrease compared to the same period in the previous year.
- How many people are contributing to the IMSS as workers? As of October 2025, there are approximately 22.7 million people contributing to the IMSS as workers, which is the second-highest number recorded since tracking began.
- What challenges does Mexico’s labor market face? One of the main challenges is formalizing nearly half of the current informal work positions. Despite efforts, the creation of formal jobs has been declining in recent years.
- How does the decline in formal job creation affect workers and the economy? Informal jobs often lack essential benefits, leaving workers vulnerable. Additionally, a weakening labor market can negatively impact government revenues and hinder long-term economic growth.
