Mexico | The decline in employers deepens the weakness in formal employment

Summary

Formal employment showed a moderate improvement in April; however, the persistent decline in employers and registered firms, weak investment, and low regional and sectoral dynamism continue to limit a sustained recovery of Mexico’s labor market.

Key points

• Key points:
• Formal employment in Mexico showed a slight improvement in April 2026, although it has accumulated 19 months of stagnation and continues to reflect a weak economic environment.
• The decline in the number of employers registered with the IMSS deepened, marking 22 consecutive months of negative annual variations and highlighting a persistent deterioration in the formal business sector.
• Overall, weakness in job creation has become widespread: 20 states across the country have recorded losses in formal employment since October 2024, with Campeche, Sinaloa, and Guerrero among the most affected states.
• Real wage growth continues to moderate and is approaching its historical average, in a context where weak job creation is limiting the dynamism of the real wage bill.
• A sustained recovery in formal employment will depend on a rebound in investment and an improvement in business confidence, both of which continue to show signs of fragility.

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