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Spain is experiencing record employment growth that contrasts with the stagnation of wage purchasing power. This situation is explained by an economic model based on the accumulation of jobs rather than improvements in productivity, compounded by a higher tax burden on labor.

Formal employment began 2026 with a monthly decline and the weakest start since 2009, confirming slower momentum. Low confidence and falling investment are holding back the recovery in employment, while real wages continue to support the wage bill and consumption.

In 2025, formal employment grew by 1.3%; however, excluding digital platform workers, growth slowed to just 0.3%. Weak investment, deteriorating business confidence, and job losses in key sectors are constraining total wage growth and, in turn, household income.

In order to better understand the impact of the labor market on Mexico's inflationary process over time, the Kalman filter methodology was used to estimate a rate of unemployment consistent with stable inflation or NAIRU.

This is the first update produced by the National Institute of Statistics and Geography on the measurement of labor poverty, following the 2024 and 2025 reforms that led to the dissolution of Coneval, the former body in charge of this task.

Formal employment reached a record high in July 2025 due to the incorporation of digital platform workers. Excluding this effect, there was a net destruction of jobs, in a context of declining investment and weak consumption.

Construction happens to be one of the sectors most heavily affected by labor shortages. While higher wages and immigration are helping to bring talent into the sector, structural problems persist that require a solution.