Economic Weakness and Trade Policy Uncertainty Impact Subnational Governments
In the first months of 2025, Mexico has experienced economic weakness nationwide, coupled with uncertainty generated by the United States’ trade policy. This situation has affected the labor market of Mexico’s subnational governments.
22 States Lost Formal Jobs in May
Out of the 32 federal entities, 22 experienced a decrease in formal employment during May of the current year. Only 10 states reported an increase in new, secure jobs according to records from the Mexican Social Security Institute (IMSS).
Sinaloa Suffered the Most Significant Job Loss
In absolute numbers, Sinaloa had the most pronounced monthly job loss, recording 16,412 fewer positions compared to April. Veracruz followed with a loss of 10,443 jobs, and Jalisco experienced a decrease of 6,136 positions.
Other states that lost over 5,000 jobs include Nuevo León (-5,960), Campeche (-5,419), and San Luis Potosí (-5,088). The job loss also affected Oaxaca (-3,825), Durango (-2,987), Guanajuato (-2,585), Querétaro (-2,312), Coahuila (-1,909), Nayarit (-1,849), Tamaulipas (-1,848), Quintana Roo (-1,660), Yucatán (-1,256), Michoacán (-1,038), Chihuahua (-1,033), Guerrero (-656), Morelos (-509), Tlaxcala (-415), Zacatecas (-403), and Colima (-136).
Central States Led in Job Creation
The 10 remaining states are the only ones that added new jobs during May. Central states, such as the District of Mexico, Mexico State, and Hidalgo, were the largest contributors to job creation.
- District of Mexico: Added 9,757 jobs
- Mexico State: Added 6,066 jobs
- Hidalgo: Added 4,928 jobs
- Baja California Sur: Added 3,579 jobs
- Sonora: Added 1,174 jobs
- Aguascalientes: Added 1,064 jobs
- Chiapas: Added 952 jobs
- Baja California: Added 605 jobs
- Tabasco: Added 98 jobs
- Puebla: Added 32 jobs
Annual Employment Trends
Over the past year, Mexico has gained 23,045 jobs. However, 19 federal entities have a negative balance due to job losses over the last 12 months, while only 13 states have a positive balance.
In May 2025, the District of Mexico reported the most significant annual job reduction (-27,024), followed by Baja California (-22,075) and Tabasco (-15,655). On the other hand, the State of Mexico led in the number of jobs secured under the Social Security system, with 64,805; followed by Nuevo León (40,670) and Jalisco (21,209).
In percentage terms, Campeche had the most dominant annual decline (-9.1%), followed by Tabasco (-7.1%) and Zacatecas (-3.6%). Conversely, Hidalgo had the highest annual variation (3.9%), followed by the State of Mexico (3.5%) and Colima (2.8%).
Current Employment Status
As of the end of May 2025, Mexico registered over 22.3 million workers under the IMSS. The District of Mexico, with the largest national economy, contributes the most to the labor market, accounting for 15.6% of this total.
Among the top 10 job creators in absolute numbers, Jalisco stands out with 9.1%, Nuevo León with 8.7%, the State of Mexico with 8.6%, Guanajuato with 5%, Baja California with 4.6%, Chihuahua with 4.3%, Coahuila with 3.9%, Veracruz with 3.4%, and Querétaro with 3.2%.
