Mexico | Business closures weigh on formal employment

Summary

Mexico’s formal employment began 2026 with weak growth, affected by low investment and business closures, particularly among SMEs. Informality is rising, while services support job creation and regional and sectoral disparities persist.

Key points

• Key points:
• Job creation in the first quarter slowed compared to 2025, in line with weaker investment dynamics.
• The closure of more than 49,000 SMEs and the decline in formal employers contrast with the growth of the informal sector, highlighting the deterioration of the formal business sector.
• Manufacturing, trade, and agriculture continue to decline, while services act as the main support.
• Regional disparities persist, with stronger growth in metropolitan areas and lagging performance in the south and north.
• Real wages continue to post moderate growth, but the wage bill is losing momentum due to weak job creation.

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