Key Areas Affected by Proposed Budget Reductions
The Mexican Secretariat of Labor and Social Prevention (STPS) is considering budget cuts for four key programs: labor justice prosecution, conflict resolution, job search support, and federal inspection. These cuts are proposed in the 2026 Federal Budget of Expenditures (PPEF).
Profedet: A 24.5% Reduction
The Procuraduría Federal de la Defensa del Trabajo (Profedet) faces a significant reduction, with the STPS requesting 167.88 million pesos for 2026, a 24.5% decrease from the approved budget for 2025.
- This would be the second consecutive year of budget reduction for Profedet, having received 18.2 million pesos less in 2024 compared to the previous year.
Imjuve: A 50% Reduction
The Instituto Mexicano de la Juventud (Imjuve) is proposed to face the most substantial cut, with a budget request of 50.8 million pesos, nearly half of what was allocated for 2025.
- If approved, Imjuve would experience three consecutive years of budget reduction. It transitioned to the STPS structure in 2022.
SNE: Moderate Reduction
The Servicio Nacional de Empleo (SNE) also faces a budget cut, with 323.75 million pesos requested for 2026—10.145.833 pesos less than the 2025 budget.
However, this reduction is moderate compared to previous sexennium cuts. One of the initial changes by President Claudia Sheinbaum’s administration was to recover part of the SNE budget.
CFCRL: Marginal Cut
The Centro Federal de Conciliación y Registro Laboral (CFCRL) would experience a marginal cut of 5.22 million pesos compared to the 2025 allocation.
This would maintain a 32% reduction from the current year’s budget, dropping from 663.34 million pesos to 447.59 million pesos.
Labor Training: A 17.2% Reduction
Labor training, particularly for non-Jóvenes Construyendo el Futuro (JCF) participants, faces a reduction. The PPEF 2026 proposes cutting the STPS labor training general directorate’s budget from 36.3 to 29.1 million pesos—a 17.2% decrease.
Federal Work Inspection: Continued Reduction
Federal work inspection will continue to experience a reduction in resources. Operating 3.7 million pesos less than the 2024 program, the 2026 budget is proposed at around 30 million pesos, similar to the 2025 allocation.
Jóvenes Construyendo el Futuro Maintains Growth
Despite the proposed cuts in other areas, Jóvenes Construyendo el Futuro (JCF) will see a budget increase, with the STPS requesting 25.17 billion pesos—almost a thousand million more than the 2025 allocation.
Although JCF no longer supports the same number of apprentices as in its early years, the budget increase is due to a rise in the stipend for participants, now equivalent to a minimum wage.
Key Questions and Answers
- What programs are facing budget cuts? Profedet, Imjuve, SNE (moderate reduction), CFCRL (marginal cut), labor training (17.2% reduction), and federal work inspection (continued reduction).
- How much is the proposed budget cut for Profedet? Around 24.5% of its 2025 budget.
- What is the proposed budget for Imjuve in 2026? 50.8 million pesos, nearly half of its 2025 allocation.
- What is the proposed budget for SNE in 2026? 323.75 million pesos, 10.145.833 pesos less than the 2025 budget.
- What is the proposed reduction for labor training (non-JCF participants)? 17.2%, cutting the budget from 36.3 to 29.1 million pesos.
- What is the proposed budget for federal work inspection in 2026? Around 30 million pesos, similar to the 2025 allocation.
- What is the proposed budget increase for Jóvenes Construyendo el Futuro? Almost 1,000 million pesos more than the 2025 allocation.
