Introduction
The Mexican labor market experienced a significant setback in August, with 1.3 million job losses reported by the National Employment and Occupation Survey (ENOE). This is the highest monthly job reduction since January 2022, when the labor market was still grappling with the aftermath of the COVID-19 pandemic.
Key Figures and Context
- Job Losses: The 1.3 million job losses in August surpass the previous high of 1.4 million lost positions in January 2022, during the height of the COVID-19 pandemic’s impact on the labor market.
- Unemployment Rate: The unemployment rate increased slightly by 0.1 percentage points to reach 2.9%, nearing its historical average. However, the unemployment rate has risen by 0.5 percentage points year-to-date.
- Accumulated Job Creation: With only 178,313 new jobs created this year, it marks the worst performance for a January-August period since 2021.
Sectoral Analysis
All occupation types experienced contractions, with subordinated employment leading the way with a loss of 402,333 jobs. Independent work followed closely behind, losing 397,277 positions. Employers saw a decrease of 331,712 jobs, while non-remunerated activities lost 171,451 positions.
Informal vs. Formal Employment
The informal labor sector absorbed the brunt of job losses, with a reduction of 1.4 million in its workforce. This is a reversal from the growth trend observed throughout 2025. Conversely, formal employment saw a gain of 197,127 positions. However, the overall trend for formal employment has been unfavorable this year, with the informality rate dropping from 56.1% to 54.8%, yet increasing by 1.1 percentage points year-to-date.
Key Questions and Answers
- What caused the significant job losses in August? The majority of the job losses occurred within the informal labor sector, which experienced a reduction of 1.4 million positions.
- How has the unemployment rate changed? The unemployment rate increased slightly by 0.1 percentage points to reach 2.9%, nearing its historical average.
- What is the accumulated job creation figure for this year? Only 178,313 new jobs have been created this year, marking the worst performance for a January-August period since 2021.
- Which sectors were most affected by job losses? Subordinated employment, independent work, employers, and non-remunerated activities all experienced job losses.
- How have formal and informal employment trends fared this year? Formal employment has seen a modest gain of 197,127 positions, but the informality rate has increased by 1.1 percentage points.
