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Mexico Labor Signals Mixed Start to 2026 as Jobless Rate Rises and Informality Edges Up

Late‑2025 gains in labor purchasing power have yet to translate into stronger, more protected employment.

Overview

  • INEGI reported unemployment at 2.7% in January, up from 2.4% in December, with the labor force at 61.3 million and participation slipping to 58.5% from 59.4% a year earlier.
  • Informality reached 54.9% in January, totaling 32.7 million workers, while subemployment fell to 6.1%, its lowest level since 2016.
  • By sector, construction added about 275,000 jobs year over year, services diverse 223,000 and transport 123,000, while agriculture lost 271,000, commerce 120,000 and professional/financial services 78,000.
  • Labor poverty fell to 32.3% in Q4 2025 (about 42.3 million people) as real per‑capita labor income rose 5.3%, though women remained more affected and southern states like Chiapas, Oaxaca and Guerrero posted the highest rates, with Baja California Sur and Colima the lowest.
  • Policy assessments stressed fixes to job quality: the OECD urged reforms to reduce informality and raise productivity, and Banxico lifted its 2026 GDP forecast to 1.6% while noting growth risks.