In welcome economic news, Mexico’s labor market saw a surge in formal employment at the start of summer. Recognizing the strength of Mexico Formal Employment, the national statistics agency INEGI reported that between May and June 2025, the country added nearly 201,920 jobs. The vast majority of these are formal positions with benefits. This marks one of the strongest monthly gains in recent years. It suggests that efforts to move workers into the formal economy are yielding results.
The data was highlighted in a government report on July 28, celebrating that formal sector growth outpaced informal job growth, further demonstrating the robust status of Mexico Formal Employment. According to INEGI, most of the new positions are in registered businesses or public sector roles. Consequently, employees will have access to health insurance, retirement plans, and other social security benefits. Claudia Sheinbaum’s administration has emphasized formalization as a policy goal, arguing it improves job quality and tax revenues.
Economists attribute the job boom to several factors. Robust domestic demand and investment in infrastructure have spurred hiring in construction and services. Additionally, ongoing trends of “nearshoring” – companies moving manufacturing to Mexico to be closer to U.S. markets. These are creating new positions in industries like auto parts, electronics, and logistics. Many of the June job gains were concentrated in manufacturing hubs in states such as Nuevo León and Querétaro. They were also in tourism and commerce centers on the coasts, according to the Labor Ministry’s breakdown, reflecting the diverse dynamics within Mexico Formal Employment.
The informal sector – which includes street vendors, day laborers, and others without formal contracts – still employs over half of the workforce. But June’s numbers indicate a shift. For the first time in several quarters, formal job growth significantly outstripped informal. Nearly 8 in 10 of the new jobs came with proper registration. Labor Minister Luisa María Alcalde hailed the trend, noting it means more families will have stable income and access to credit. “Every formal job is a step toward reducing inequality,” she said, underscoring the importance of Mexico Formal Employment.
Substantial growth in youth employment
One area of substantial growth is youth employment. Programs like Jóvenes Construyendo el Futuro (Youths Building the Future), an apprenticeship initiative, have funneled many young people into formal jobs after training. The summer hiring season also boosted youth job numbers as tourism and retail ramped up staffing.
Despite the positive data on Mexico Formal Employment, challenges remain. Underemployment is still an issue – many workers are in formal jobs but earning low wages or working fewer hours than they would like. And some sectors saw declines; agriculture, for instance, shed jobs due to seasonal factors and drought conditions in parts of the country. Meanwhile, real wage growth has been modest, meaning inflation still pinches many households’ purchasing power. This happens even as more people are formally employed.
Analysts also caution that the large monthly gain may partially reflect a one-time statistical blip or delayed hiring from earlier in the year. They will watch if the trend holds in coming months. Early indicators for July and August are positive. Online job postings and IMSS (social security) enrollments continue to rise, suggesting Mexico’s economy is generating jobs at a healthy clip.
For President Sheinbaum, the news bolsters her economic narrative that Mexico can achieve growth with social inclusion. At a press event, she cited the INEGI report as validation of increasing minimum wage and pro-SME (small business) policies. “Formalization is advancing – more workers in the system, contributing and protected,” Sheinbaum said. She added that combating informality remains a top priority.
If the momentum continues, Mexico is on track in 2025 to register one of its best years for job creation in over a decade. Mexico Formal Employment's injection of secure jobs could have ripple effects. Higher consumer confidence, greater mortgage and credit eligibility for workers, and improved government tax intake, all reinforcing a virtuous economic cycle.
