Mexico Among Lowest OECD Unemployment; Global Rate Holds at 4.9%

In April 2025, the OECD unemployment rate remained steady at 4.9%, marking three consecutive years at or below this level. Unemployment was stable in 22 member countries, declined in 7, and rose in 4. Mexico stood out with one of the lowest unemployment rates among OECD members at 2.6%, alongside Japan (2.5%), the Czech Republic, and South Korea (both 2.7%), according to El Economista. Among youth under 25, Mexico also maintained a low unemployment rate of 5.7%, well below the OECD average of 11.2%.

Conversely, Spain recorded the highest unemployment rate at 10.9%, with youth unemployment reaching 25.6%. Despite this, Spain’s business ecosystem shows resilience. As of April 2025, Spain had 2.97 million active companies, 99.8% of which are SMEs. These SMEs generated 11.5 million jobs, accounting for 61% of private-sector employment. 

Growth was strongest among small (+1.76% YoY) and medium enterprises (+1.92% YoY), while larger companies grew by 4.05% YoY, indicating consolidation in key sectors. The services sector dominates, comprising 74% of businesses and employing the largest workforce share in trade, manufacturing, healthcare, and hospitality.

In Mexico, SMEs similarly anchor the economy, representing 99.8% of businesses and providing over 57% of jobs. However, Mexico’s labor market faces challenges despite low unemployment. In May 2025, IMSS data showed a net loss of 45,624 formal jobs, largely due to seasonal drops in temporary employment and contractions in construction and extractive industries, writes MBN. Twenty states reported negative employment growth, with Campeche leading at a 9.1% decline.

Structural issues such as high informality, affecting over 54% of the workforce, underemployment, and low female participation persist. Labor force participation decreased from 60.5% to 59.4%, with informality rates varying widely across regions. Global employment growth forecasts have been revised down by the ILO due to geopolitical tensions and trade conflicts, factors impacting Mexico significantly given its reliance on US trade flows. Additionally, 

AI adoption is expected to alter job functions for nearly 25% of workers worldwide, though economic recession and trade issues are viewed as more immediate risks by Mexican workers.

Mexico’s pending labor reforms, including a proposed 40-hour workweek, aim to enhance productivity and competitiveness.