Mexico’s unemployment rate fell to an all-time low of 2.2% in March, but more than half of the country’s workers are in informal sector jobs, according to the national statistics agency INEGI.
The unemployment rate declined from 2.5% in February to reach its lowest level on record.
The previous lowest unemployment rate was 2.3% in March 2024. Unemployment didn’t exceed 3% of the “economically active population” (PEA) last year.
Gabriela Siller, director of economic analysis at Banco Base, noted that the unemployment rate continued to trend down in March (it was 2.7% in January), but asserted that “the quality of jobs” people are in “is not ideal.”
That assertion is backed up by INEGI data that shows that around 40% of workers earn the minimum wage or less, and an additional 30% earn 1-2 minimum wages (see below).
Siller highlighted that the number of people in informal sector jobs — street vendors and many domestic workers, for example — remains at a “high” level.
Here are the most important results from INEGI’s most recent National Occupation and Employment Survey.
Mexico’s ‘economically active population’
- Mexico’s PEA — people aged 15 or over in jobs or looking for work — numbered 61.1 million in March.
- Out of the total PEA, 59.7 million people had jobs while 1.4 million people were looking for work. The 2.2% unemployment rate in March is derived from these figures.
- The number of people in jobs increased by more than 560,000 compared to February, the best result for job creation since last July.
- Around 59% of people who were in employment in March are men while the remainder are women.
- Some 800,000 men were looking for work in March while approximately 600,000 women were seeking employment. Therefore 57% of Mexico’s jobseekers are men and the remainder are women.
- Unemployment among women was 2.3% last month, slightly higher than the 2.2% rate among men.
Unemployment Rate in Mexico decreased to 2.20 percent in March from 2.50 percent in February of 2025.https://t.co/VNAz7xBIvf pic.twitter.com/7Lb3hmI0KX
— TRADING ECONOMICS (@tEconomics) April 28, 2025
Underemployment ticks up
- Approximately 3.9 million people were underemployed in March, up from 3.7 million in February.
- Of the 59.7 million people in jobs, 6.6% were classified as underemployed, up from 6.3% in February and 6.5% a year earlier.
54% of workers employed in Mexico’s informal sector
- The percentage of workers employed in Mexico’s vast informal sector declined to 54.4% in March from 54.5% in February.
- A total of 32.5 million workers were in informal sector jobs last month. These people don’t pay income tax, and don’t have access to benefits such as sick pay, health care and paid vacations.
- The percentage of female workers in informal sector jobs in March was 54.8%, slighter higher than the 54.1% rate for male workers.
Employment by sector
- Almost half of all workers — 45.4% — were employed in the services sector in March. A total of 27.1 million people were working in this sector last month.
- Just under 20% of workers were employed in the “commerce” sector, which includes retailers and wholesalers. This sector includes many informal workers, such as street vendors.
- Sixteen percent of all workers were employed in Mexico’s manufacturing sector, an export powerhouse.
- Almost 10% of workers worked in the agricultural sector.
- Just under 8% of workers were employed in the construction industry.
How much do Mexican workers earn?
- Almost 40% of workers earn the minimum wage or less, according to INEGI’s data for March. Mexico’s minimum wage is currently set at 278.80 pesos (US $14.25) per day, or 8,364 pesos per month (US $427), in most of the country.
- Almost 30% of workers earn 1-2 minimum wages (US $427-$854 per month).
- Just over 6% of workers earn 2-3 minimum wages ($854-$1,281 per month).
- Just over 2% of workers earn 3-5 minimum wages ($1,281-$2,135 per month).
- Only 1% of workers earn more than 5 minimum wages (more than $2,135 per month)
- The salary of approximately 17% of workers was “not specified,” according to INEGI, while about 4% of people in jobs are not remunerated for their work.
With reports from El Economista and EFE
