#1 out of 3
business1d ago
Mexico Achieves 44.6% Formal Employment but Job Growth Slows
- Mexico ended 2025 with 44.6% of workers in formal jobs, totaling about 26.5 million people.
- Formal job creation slowed in 2025, with net growth far below the level needed to meet labor demand.
- IMSS registered 278,697 formal jobs added in 2025, modest by historical standards.
- Overall annual growth in registered employment stood at 1.3%, one of the lowest in recent years.
- A significant share of 2025 gains came from a pilot program registering platform workers with social security.
- Social security coverage expanded to over 80% when all public schemes are included.
- Informality remains a structural challenge, with the informal rate around 55.4% in late 2025.
- Analysts expect 2026 hiring to be contained, with ManpowerGroup projecting 150,000–300,000 new formal jobs.
- Upcoming regulatory changes may affect labor costs, including higher minimum wages and social security contributions.
- There is a planned transition toward a 40-hour workweek starting in 2027, with 2026 as a transition year.
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