The cumulative creation of formal jobs in Mexico fell to 201,605 between January and May 2016, following the loss of 29,922 positions in May alone, the Mexican Social Security Institute (IMSS) reported on Monday.
The monthly decline, equivalent to a rate of -0.1 percent, reduced the progress the country had accumulated through April, when it had added 231,527 new formal jobs for the year.
Despite the May drop, the IMSS reported 22,718,681 affiliated jobs at the end of the month, the fifth-highest figure on record and the highest ever for a May.
Of the total, 86.8 percent were permanent jobs and 13.2 percent were temporary. Permanent jobs totaled 19,730,767, also the highest number of affiliations recorded for a May.
The institute attributed the monthly loss primarily to the seasonality of the agricultural sector, which typically sees a temporary reduction in employment during this period due to the conclusion of planting, maintenance, and harvesting stages in various regions of the country.
The agency also noted that May’s performance was influenced by the cancellation of a fraudulent employer registration that concentrated individuals without a genuine employment relationship through schemes simulating social security coverage.
According to the IMSS (Mexican Social Security Institute), “if this extraordinary effect is isolated, the number of jobs would maintain a positive trajectory in formal job creation.”
Over the past 12 months, formal employment grew by 346,637 positions, a year-on-year rate of 1.5 percent.
By sector, the largest annual increases were recorded in transportation and communications, with 13.5 percent; the extractive industry, with 4.1 percent; and social and community services, with 2 percent.
In contrast, manufacturing fell 1.4 percent and the agricultural sector declined 4.3 percent.
By state, Hidalgo, the State of Mexico, and Oaxaca stood out, with annual increases exceeding four percent.
What are wages like in Mexico?
The average daily wage used for social security contributions reached 671.3 pesos (about US$37.30) in May, the highest level for any month since records began, according to the Mexican Social Security Institute (IMSS).
Wages showed a nominal annual increase of 41.3 pesos (about US$2.30), the fifth-highest increase for a May, while in relative terms, they rose 6.6 percent.
The institute also reported 1,015,999 employers. On digital platforms, the Mexican Social Security Institute (IMSS) reported 1,554,053 people benefiting from the sector’s reform, of whom 197,131 surpassed the monthly net income threshold and became formally employed.
It also registered 57,564 jobs associated with domestic workers and 437,600 with self-employed individuals. Although the IMSS is the main indicator of formal employment, the Mexican labor market maintains a large informal component.
According to INEGI data cited in the background information, by the end of 2025, informal employment reached 55 percent of the employed population, representing 32.9 million people.
Source: elfinanciero
