The Current State of Construction Employment
The construction job market is not experiencing its best period, especially when compared to 2024. In May, the occupation in the sector saw a yearly decline of 141,845 positions. Without considering the pandemic’s impact on the labor market, this is the worst figure for a fifth month of the year since 2019, according to the National Survey of Occupation and Employment (ENOE).
The annual contraction registered in May is even greater than the growth accumulated that construction employment has had so far in 2025 (+131,044).
Factors Affecting the Construction Industry
The Cámara Mexicana de la Industria de la Construcción (CMIC) acknowledges that the end of 2024 implied a setback in recovery due to the effects of Covid-19. The organization stated that factors such as reduced public investment in infrastructure, particularly for federal road maintenance, and the completion of emblematic projects like the Tren Maya and the Tren del Istmo de Tehuantepec, influenced this outcome.
Gabriela Siller, director of Economic and Financial Analysis at Banco Base, highlighted that the construction sector has been affected by deteriorating economic expectations, uncertainty over the US protectionist policy, Mexico’s constitutional reforms, high-interest rates, the completion of previous administrations’ emblematic projects, and reduced public spending, especially on infrastructure.
Impact of Public Works on Employment
According to the Proyectos prioritarios y empleo: Impacto de la infraestructura research by the Centro de Investigación Económica y Presupuestaria (CIEP), public works in the previous six-year term had an impact on job creation.
“The Tren Maya shows one of the broadest impacts, with a 43.6% growth in construction employment and a general increase of 15.9% in the occupied population, suggesting strong labor activation in the southeastern region. In contrast, the Corredor Interoceánico had a more moderate effect: while overall employment grew 11.2%, construction employment only increased by 2.6%, which could indicate execution delays,” the report details.
Is This a Construction Industry Problem Alone?
However, the negative trend in job creation that the construction industry is facing is not unique to the sector; it’s part of a broader market behavior, with job generation having a slow pace throughout 2025.
In general terms, job creation remained steady in May but at a slower rate, with only 71,664 people added to the employed population, the worst figure for job creation this year.
Although the employed population has had three consecutive months of growth, the pace has weakened. In March, 562,560 people were added to employment; in April, it was 165,841; and in May, only surpassed 100,000 positions.
Projections for the third quarter of the year are not favorable either. According to ManpowerGroup’s Employment Outlook Survey, 37% of companies do not anticipate changes in their workforce, while another 16% expects a decrease in their labor force.
Key Questions and Answers
- What is the current state of construction employment? The construction job market is not experiencing its best period, with a yearly decline of 141,845 positions in May. This is the worst figure for a fifth month of the year since 2019.
- What factors are affecting the construction industry? Factors such as reduced public investment in infrastructure, uncertainty over US protectionist policy and Mexico’s constitutional reforms, high-interest rates, completion of previous administrations’ emblematic projects, and reduced public spending on infrastructure have negatively impacted the construction sector.
- How do public works affect employment? Public works, like the Tren Maya, have shown significant impacts on job creation in their respective regions. However, projects like the Corredor Interoceánico have had a more moderate effect.
- Is the construction industry’s job crisis unique? No, the negative trend in job creation is part of a broader market behavior, with slow job generation throughout 2025.
- What are the employment projections for the third quarter of 2025? According to ManpowerGroup’s Employment Outlook Survey, 37% of companies do not anticipate changes in their workforce, while another 16% expects a decrease in their labor force.
