Introduction to the Labor Market in 2025
The labor market snapshot for 2025 reveals a decline in job quality, despite low unemployment rates. The creation of jobs occurred under more precarious conditions and with a significant gender imbalance.
Informality Dominates Job Creation
According to the National Institute of Statistics and Geography (Inegi), one million 57,970 jobs were generated in 2025, all within the informal economy. A staggering 99.6% of these positions were occupied by men.
Formal employment saw a loss of 103,956 jobs, while informal job creation reached one million 161,926. This resulted in an increased labor informality rate from 53.7% at the end of December 2024 to 54.6%, affecting 32 million 988,763 individuals currently.
Labor Participation and Unemployment Rates
The labor force participation rate stood at 59.1% in December, slightly below the 59.4% reported for the same month a year prior.
The unemployment rate closed 2025 at 2.4%, the same as December 2024. Extended unemployment, which includes those not actively seeking work but available to do so, fell from 10.4% to 10.1% throughout the year.
Gender Disparity in Job Growth
Janeth Quiroz, Director of Economic Analysis, Cambiario, and Securities at Grupo Monex, states that these figures reflect a “gradual moderation of the labor market,” aligning with the reported weakening in economic activity.
“While the unemployment rate remained at low levels (2.65% annual average), this behavior occurs in a context of lower labor force participation, moderation in the number of employed individuals, and an increase in informality,” Quiroz explained.
Leading Sectors in Job Creation
The job creation balance was mixed, with a loss in industrial activities. The services sector saw a positive outcome of 735,564 positions.
- Commerce: Added 852,074 jobs.
- Restaurants and Hotels: Created 353,035 positions.
Other service activities reported losses, led by social services (-300,084 positions). Meanwhile, agricultural activities generated 500,652 jobs.
The secondary sector was the only one with a negative annual balance, losing 153,132 jobs. The decline was concentrated in manufacturing (-237,652 positions), while construction (74,208) and mining (10,312) showed positive figures.
Quiroz predicts that the labor market in 2026 will face “a more fragile environment, characterized by lower job creation and increased pressures on job quality (informality and critical working conditions). Additionally, the rise in the minimum wage will pose challenges for businesses, particularly those with labor-intensive activities, potentially exacerbating pressures on job quality in the period.”
Key Questions and Answers
- What is the overall job creation situation in 2025? One million jobs were created, all within the informal economy and predominantly taken by men.
- What were the unemployment and labor participation rates in 2025? The unemployment rate was 2.4%, and the labor participation rate was 59.1%.
- Which sectors experienced job growth in 2025? The service sector, particularly commerce and restaurants/hotels, saw significant job growth.
- What challenges does the labor market face in 2026? The market is expected to encounter lower job creation, increased informality pressures, and challenges posed by rising minimum wages.
