Introduction to the Shift in Mexico’s Labor Market
In 2025, Mexico’s labor market was dominated by self-employment, with traditional wage employment losing ground. This shift coincided with a rise in informality and precarious working conditions.
Rise of Self-Employment
According to the National Employment and Occupation Survey (ENOE), self-employment became the most viable option for entering the labor market, accounting for over half of the jobs created in 2025.
Out of a total of 1,579,700 positions generated in the previous year, 557,508 were in the self-employed category. Consequently, the proportion of this segment within total employment increased from 20.9% at the end of December 2024 to 21.5% by the end of December 2025.
Currently, there are approximately 12,964,517 self-employed individuals in Mexico. Of these, 58.5% are men and 41.5% are women.
Decline in Traditional Wage Employment
While traditional wage employment added 338,367 people to its ranks in 2025, its participation in Mexico’s labor market decreased from 70.1% to 69.4% during the same period.
The number of employers grew by 138,734, and the count of unpaid workers increased by 23,361. However, their participation in the overall employment and occupation composition remained nearly unchanged from 2024, at 6.0% and 3.1%, respectively.
Contextualizing the Shift
According to the International Labour Organization’s (ILO) report, “Labour Outlook 2025 for Latin America and the Caribbean,” self-employment in the region has historically acted as a “buffer” during periods of insufficient wage employment demand, typically concentrating in lower-productivity occupations with high informality and greater precarity.”
This aligns with the ENOE’s December figures, as the growth in self-employment was paralleled by a rise in informal job creation. This led to an increase in the informality rate from 53.7% at the end of December 2024 to 54.6% by the end of December 2025.
Worsening Working Conditions
The INEGI also highlighted that precarious employment increased in Mexico during 2025.
Based on equivalent minimum wages, the rate of precarious occupation conditions rose from 35.2% at the end of 2024 to 38.4% by the end of 2025.
This rate includes individuals working less than 35 hours weekly due to market conditions, those working more than 35 hours but earning below the minimum wage, and those putting in over 48 weekly hours but earning less than two minimum wages.
The rate of wage employment was 66.7% of the occupied population in December 2025, a decrease from 67.2% reported the previous year.
The suboccupation rate, which covers those needing or available to work more hours than their current occupation demands, fell from 6.9% in 2024 to 6.2%, the lowest level since December 2016. This situation affects 3,746,909 people.
Moreover, the labor gap, the broadest measure of employment deficit in an economy, also decreased in 2025. This indicator closed the year at 15.7% of Mexico’s potential labor force, down from 16.6% in December 2024. Consequently, approximately 10,522,543 people in Mexico need employment.
Key Questions and Answers
- What is the main shift in Mexico’s labor market in 2025? Self-employment saw significant growth, while traditional wage employment lost ground.
- How many people are self-employed in Mexico? There are approximately 12,964,517 self-employed individuals in Mexico.
- What is the informality rate in Mexico’s labor market at the end of 2025? The informality rate increased to 54.6% by the end of December 2025.
- How have working conditions changed in Mexico’s labor market? Precarious employment increased, and the rate of wage employment decreased in 2025.
- What is the current labor gap in Mexico? The labor gap stands at 15.7% of the potential labor force in Mexico, affecting around 10,522,543 people.
