Introduction
The open unemployment rate in Mexico requires careful interpretation, much like handling fragile or hazardous items with caution. The labor market is both delicate and risky, and the recent data warrants a thorough examination.
Open Unemployment Rate: A Closer Look
According to Mexico’s National Employment and Occupation Survey, the open unemployment rate was 2.5% between January and March 2025. While this figure might seem positive when compared to countries like Spain (11.2%) and the United States (4.2%), it’s essential to delve deeper into the context.
Consistency Despite Changes
Interestingly, the open unemployment rate for 2025 remains identical to that of 2024, despite significant changes in the economic landscape. At the beginning of 2024, the Mexican economy was thriving, with nearshoring gaining traction and the government actively promoting economic growth ahead of elections. The U.S. economy was also in an expansion phase, and Trump’s policies had yet to take effect.
Job Creation vs. Job Elimination
In the first quarter of 2024, 630,000 jobs were created. However, the same period in 2025 saw a net loss of 119,896 positions. Although the official unemployment rate has decreased by 51,989 individuals, this figure doesn’t reflect the entire picture.
Población Económicamente Activa (PEA) and Población No Económicamente Activa (PNEA)
The PEA, which includes 60.2 million people, has seen a decrease of 172,000 individuals. This indicates fewer people are either working or actively seeking employment.
On the other hand, the PNEA, comprising 40.8% of the population aged 15 and above (totaling 41.8 million people), has increased by 1.3 million compared to 2024. This category reveals economic inequality based on gender, with 29.7 million women and 12 million men.
Reasons for Not Seeking Employment
The INEGI report mentions 5.3 million people who neither sought nor wanted work but would accept a job if offered. Reasons for not actively seeking employment vary, including demotivation and prolonged job search periods.
INEGI’s Work: Analyzing the Data
The INEGI’s work with the ENOE is commendable, prompting critical thinking about labor market trends. For instance, Guerrero has the lowest open unemployment rate (0.9%) nationally, which might be attributed to its informal economy. Seventy-six point five percent of Guerrero’s employed population works in informal sectors, the highest rate in the country.
Conclusion
Key Questions and Answers:
- Q: Why should we be cautious about the open unemployment rate in Mexico? A: The open unemployment rate doesn’t fully capture the labor market’s condition. Factors like informal employment and discouraged workers must also be considered.
- Q: What does Guerrero’s low unemployment rate indicate? A: Guerrero’s low open unemployment rate (0.9%) might be due to a high informal employment sector, which doesn’t reflect the true labor market situation.
- Q: How does gender play a role in the PEA and PNEA categories? A: The PEA and PNEA data reveal gender-based economic inequality, with a significant difference in the number of employed and non-employed women and men.
