Mexico’s unemployment rate rose in September compared to the previous month, even though the size of the national workforce increased by more than 700,000 positions.
The national statistics agency INEGI reported on Tuesday that the unemployment rate was 3% in September, up from 2.9% in August and 2.9% in September 2024.
The unemployment rate last month was 0.8 percentage points higher than the all-time low of 2.2%, recorded in March 2025. The 3% rate was the highest since August 2024.
Although the size of Mexico’s workforce grew by 744,998 positions last month to reach just over 60.24 million, the unemployment rate increased slightly because the economically active population (PEA) — people aged 15 or over in jobs or looking for work — rose by an even higher number.
The PEA increased by 793,353 people compared to August to reach 62.09 million people.
Gabriela Siller, director of economic analysis at Banco Base, said on social media that there was a “clear deterioration” of the Mexican labor market in September. She noted that Mexico’s unemployment rate, underemployment rate and informality rate all increased last month.
The financial group Monex said that INEGI’s latest employment data reflects “a mixed evolution of the labor market.”
“On one hand, the unemployment rate continues an upward trend, reaching its highest level in thirteen months. However, labor force participation and the [size of the] employed population … showed a slight improvement,” Monex said.
Unemployment in Mexico has trended up in 2025 as the pace of economic growth slowed markedly compared to 2024.
Source: tradingeconomics.com
More than 1.8 million Mexicans are looking for work
INEGI’s data shows that just under 1.85 million people were unemployed in September.
That figure increased by more than 52,000 compared to August. In March, when Mexico’s unemployment rate declined to its lowest level on record, only 1.35 million people were unemployed.
Around one-third of the 1.85 million people looking for work in September fall into the 15-24 age category. Around half are aged 24-44, while the remainder of the unemployed population is 45 or older.
In September, just over 1 million men were unemployed while close to 800,000 women were jobless. The unemployment rate among men was 2.9% and 3.1% among women.
INEGI also reported that 7.3% of workers were underemployed in September, meaning that they were working fewer hours than they wanted. That figure increased by 0.2 percentage points compared to August.
More than half of Mexican workers are employed in the informal sector
INEGI reported that 33.1 million people worked in informal sector positions in September.
That figure represents 54.9% of all people in jobs last month. The percentage of workers in informal sector jobs was slightly lower in August at 54.8%.
Informal sector workers, including street vendors and many domestic workers, generally don’t pay income tax and don’t have access to formal sector employment benefits such as IMSS or ISSSTE medical insurance and paid vacations.
Among female workers, 55.3% were in informal sector positions last month, while the rate among men was slightly lower at 54.6%.
Beatriz Robles, a director with the staffing and recruitment firm Manpower Group México, said that reducing informality in the Mexican labor force “is not just an economic goal, but a strategy to build a more competitive country.”
Employment by sector
- More than four in ten workers — 44.2% — were employed in the services sector in September. A total of 26.6 million people were working in this sector last month.
- One in five workers (20%) were employed in the “commerce” sector, which includes retailers and wholesalers. This sector includes many informal workers, such as street vendors.
- Just under 16% of all workers were employed in Mexico’s manufacturing sector, an export powerhouse.
- Almost 11% of workers worked in the agriculture, ranching, fishing and forestry sectors.
- Just under 8% of workers were employed in the construction industry in September.
How much do minimum-wage and informal workers earn in Mexico City? We asked.
Employers vs. employees
In September, 6% of the members of Mexico’s workforce were employers, according to INEGI, while 69.4% were employees.
Just over 21% of workers were classified as independent or self-employed. Just over 3% of workers did not receive remuneration for their work, INEGI said.
How much do Mexican workers earn?
- Almost 40% of workers earn the minimum wage or less, according to INEGI’s data for September. Mexico’s minimum wage is currently set at 278.80 pesos (about US $15) per day, or 8,364 pesos per month (US $454), in most of the country.
- Almost 31% of workers earn 1-2 minimum wages (US $454-$908 per month).
- Just over 6% of workers earn 2-3 minimum wages ($908-$1,362 per month).
- 2.5% of workers earn 3-5 minimum wages ($1,362-$2,270)
- Less than 1% of workers earn more than 5 minimum wages (more than $2,270 per month)
- The salary of almost 15% of workers was “not specified,” according to INEGI.
With reports from Reporte Indigo and Debate
