Introduction
Labor informality remains a significant hurdle to inclusive economic development in Mexico. According to INEGI, the labor informality rate reached 55% of total employed individuals in May 2025, up from 54.4% during the same period in the previous year. This high informality rate is accompanied by low productivity, as the informal sector contributes only 24.8% to Mexico’s GDP in 2023, despite employing the majority of workers. Addressing labor informality through comprehensive and sustained policies is crucial for building a fairer, more productive, and competitive nation.
Collaborative Efforts
Recently, I met with Coparmex’s Informality Committee, acknowledging them as strategic allies of Mexican businesses. We share a clear vision: informality must be tackled, not just fought. This requires raising awareness among the business sector, organized civil society, researchers, academics, and public officials about the structural barriers informality poses to inclusive development. Subsequently, forging alliances to establish mechanisms that transform labor informality into better-paying jobs with access to quality social security and financial benefits.
Challenges in Microeconomic Units
A significant challenge is addressing microeconomic units, as their smaller size correlates with higher informality rates. Microunits with physical establishments employ nearly 70% of informal workers, while those without physical locations have over 90% informality.
Sectoral Informality Distribution
Data from FLACSO’s analysis of labor informality in Mexico, completed last year, reveals that the primary sector has the highest informality rate at 84%, followed by construction (78%) and hospitality services (70%). Even in manufacturing, where one might expect higher formality, informality still accounts for 36% of jobs.
Institutional Financial Support
To resolve this economic challenge, it must become a national priority. Institutional financial support can play an active and decisive role. First, we must convince ourselves that growing business income and profits is the most effective path to formalization, ensuring more benefits than costs and less risk than uncertainty.
Mexican financial institutions are well-positioned to support this effort, as we represent a crucial component of the national economy. We function as local banks, focusing on personalized and comprehensive financial solutions for entrepreneurs, professionals, families, and businesses. Collaborating with the government, we can contribute more decisively to sustainable access to financing, inclusion, and financial education for millions of Mexicans.
UNIFIMEX and Coparmex Alliance
The partnership between UNIFIMEX and Coparmex is not just strategic but necessary. With commitment and collaboration, we can transform informality into a development opportunity for millions of Mexicans. Today, Mexican banking has the capacity—and responsibility—to be a genuine bridge to social justice. It’s time to demonstrate that when financial institutions, the business sector, and government unite their efforts, inclusive and sustainable growth becomes not just possible but inevitable.
Key Questions and Answers
- What is labor informality in Mexico? Labor informality refers to employment situations outside legal and regulatory frameworks, characterized by low productivity and high vulnerability.
- Why is labor informality a concern in Mexico? High labor informality rates (55% in May 2025) hinder inclusive economic development, as the informal sector contributes only 24.8% to Mexico’s GDP despite employing the majority of workers.
- Who are the key allies in addressing labor informality? Coparmex’s Informality Committee, along with organized civil society, researchers, academics, and public officials, are crucial allies in tackling labor informality.
- What challenges do microeconomic units face regarding informality? Smaller-sized microunits, both with and without physical establishments, experience higher informality rates, employing nearly 70% and over 90% of informal workers, respectively.
- How can institutional financial support help? Financial institutions can contribute by growing business income and profits, ensuring formalization benefits outweigh costs and reducing risks.
- What is the significance of the UNIFIMEX and Coparmex alliance? This partnership is essential for transforming informality into development opportunities, bridging the gap to social justice through collaborative efforts.
