Mexico’s Informal Sector Drives Employment Growth in 1H25

Mexico added 848,494 new jobs in the first half of 2025, according to data from INEGI’s National Occupation and Employment Survey (ENOE). While this figure represents the strongest job growth since 2019, the majority of the employment increase occurred in the informal sector.

INEGI reports that over 1.13 million individuals joined informal employment between January and June 2025, marking the highest first-semester increase ever recorded, excluding pandemic-related disruptions. Over the same period, formal employment contracted by 278,470 jobs.

The survey indicates that the share of informally employed workers rose from 53.7% to 54.8% of the employed population. This structural shift underscores the ongoing challenges in formal job creation, even as overall employment numbers improve.

“The labor market continues to evolve, driven by structural and cyclical factors, including new work modalities, digital transformation, and sectoral trends,” says INEGI. The agency also reported a total working-age population of 103.1 million, with 62.5 million economically active and 60.8 million currently employed.

Unemployment in June stood at 2.7%, reflecting a three-point increase compared to the previous month, but remaining below historical averages, reports MBN. Meanwhile, underemployment rose from 6.9% to 7.4%, the highest rate since November 2024. About 350,000 people gained employment under suboccupation conditions, bringing the total to 4.4 million, reports El Economista.

Self-employment emerged as a primary contributor to job creation. El Economista reports that 673,991 people became self-employed during the first half of the year, the highest figure for this category since 2021, when the market was still recovering from the COVID-19 pandemic. In contrast, subordinate salaried employment decreased by 220,564 jobs.

These shifts highlight a continued reliance on informal and independent employment channels as formal job opportunities contract. In the same period in 2024, Mexico saw a net job loss of 196,429.

INEGI’s report also reveals that service-related sectors now account for 63.5% of the employed population, while the commerce sector represents 19.2%, followed by industry (17.3%) and agriculture (9.6%). About 32.4 million people work in microenterprises, while 14.4 million are self-employed and 2.5 million are unpaid workers.