In August, Mexico’s job market faced a setback, losing 626,770 positions, marking the second-worst figure for the country in 2024. Despite this, only the manufacturing and restaurant industries saw job growth during this period, with other sectors experiencing declines.
The unemployment rate in Mexico increased to 3.0%, approaching its historical average, with over a million people joining the Non-Economically Active Population. Gabriela Siller of Banco Base noted that retirees, students, and homemakers typically make up this group in the country.
Job Market Challenges
Informal employment accounted for 74.7% of eliminated positions, while formal employment saw a milder reduction. Boosting formal employment remains a key challenge, with subordinate work seeing the biggest decline but self-employment showing growth.
The industrial sector was the only area of growth, with manufacturing adding jobs and offsetting losses in construction. Service activities suffered the most significant job losses, with agriculture also contributing to the downturn despite year-to-date job creation in Mexico.