Behind Mexico’s low unemployment rate, a surge in informal work and shrinking formal sector
Annual job creation at the end of the first quarter of this year was the third-lowest in 15 years, driven by gains in the informal sector. Mexico’s active workforce increased by 551,651 people in the first quarter of the year compared to last year, the national statistics agency INEGI reported on Tuesday .That was the lowest positive job creation figure for the same period since the end of Q1 2011, when Mexico added just 534,469 positions over 12 months. The worst job creation result in the last fifteen years was the annual loss of over 2 million jobs at the end of the first quarter of 2021. The Mexican economy shed a large number of jobs in 2020, when the COVID pandemic and associated restrictions caused a sharp contraction . The second-worst job creation result in the past 15 years was the loss of almost 120,000 jobs between Q1 of 2024 and Q1 of 2025. Perhaps even more concerning than the most recent year-over-year job creation figure is that the size of Mexico’s formal...