Manpower Warns of Challenges in Formal Employment Creation

Mexico needs stronger incentives for investment to generate formal employment, says Mónica Flores, President, ManpowerGroup Latin America. She adds that jobs are not created by decree but through conditions that foster trust, legal certainty, and security.

“The only way to generate employment, particularly formal jobs, is through investment. To achieve this, we must build confidence with security, legal certainty and the rule of law, which are not minor issues,” Flores tells Vanguardia. 

While household income has been rising, informality remains an obstacle. Informal employment limits access to health care, pension systems, and long-term quality of life, making it a structural problem for the country’s workforce.

These circumstances strongly affect women, a problem worsened by the lack of a broad care system, which restricts their ability to fully integrate into the formal economy, says Flores. Data from the National Institute of Statistics and Geography (INEGI) shows a gender gap in labor participation: as of the second quarter of 2025, men’s participation rate was 75.1%, compared with 45.8% for women.

While Mexico has seen positive income growth, sustained job creation will depend on policies that encourage investment and strengthen institutional conditions. Addressing informality and expanding women’s participation in the labor market remain central to shaping the future of formal employment in the country.