Economics: Employment stagnates in the second quarter and July 2025

MEXICO - Report 09 Sep 2025 by Mauricio González and Francisco González

According to the National Occupation and Employment Survey (ENOE), for the second quarter of 2025 and July, the growth in job numbers indicates a clear slowdown that began last year, consistent with the overall weakening of the economy. The employed population experienced a weak annual increase, both in July of this year (0.8%) and in the second quarter (0.2%). This can be attributed to the decline in formal employment during those time frames (-1.0% annually in the second quarter and -2.8% in July of this year).

In contrast, informal employment grew an annual 1.2% in the quarter and a considerable annual 3.8% in July. In July, the labor reform for digital platform workers, approved at the end of last year, began to be implemented. This resulted in nearly 1.2 million taxi and delivery drivers on these platforms being registered with the Mexican Social Security Institute (IMSS), with the increase concentrated in temporary employment within the communications and transportation sector. Thus, the 5.6% annual growth in the number of IMSS affiliates for the month is no more than a reflection of the pilot phase application of the reform, not an increase in employment dynamism, which remains weak when considering both ENOE figures and the number of IMSS affiliates in the permanent employment category.

This situation has had and will continue to have negative repercussions on private household consumption for this year and probably for 2026. In this regard, private consumption figures up to June were released last week and showed a relatively weak annual increase of 1.1% for the month, while the average for the first half of the year remains stagnant (-0.1% annually). Gross fixed investment figures for June were also published, with the index recording an annual decline for the tenth consecutive month, marking six months in which both construction spending and investment in machinery and equipment (M&E) have contracted.

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