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Mexico’s Unemployment Rate Falls to 2.8% as Labor Force Shrinks

Analysts say the lower jobless rate masks a weaker labor market with a falling labor force, widespread informal jobs, a shift from salaried to self‑employment

Overview

  • INEGI’s ENOE published Thursday showed unemployment at 2.8% with about 1.8 million people unemployed, a decline of roughly 91,500 from a year earlier.
  • The economically active population fell by about 358,839 to 61.7 million and the number of employed people dropped by 267,333 to 60.0 million, indicating a contracting labor force.
  • Informal employment slipped to 32.6 million people, equal to 54.3% of those employed, a modest fall from 54.9% in September 2025.
  • ENOE data show a major occupational shift with 782,000 fewer salaried workers, 510,000 more self‑employed and 81,000 more employers, signaling weaker creation of formal wage jobs.
  • Manpower and other analysts caution that lower informality partly reflects job losses, that Mexico must add about 1.0–1.1 million formal jobs a year to absorb new workers, and that employer surveys point to a tentative hiring uptick for Oct–Dec.