Mexico posts best jobs growth of 2026, but informal sector drives the gain
July saw Mexico's best job growth of 2026, but the gains came almost entirely from informal employment, as the formal sector lost over 400,000 positions. The post Mexico posts best jobs growth of 2026, but informal sector drives the gain appeared first on Mexico News Daily
Mexico reported its best job growth in 2026, but a majority of the gains came from the informal sector, according to data from the national statistics agency INEGI. In July, the country added nearly 1.1 million jobs in the informal sector, while over 400,000 positions were lost in the formal sector. As a result, Mexico's informality rate climbed to 56.2%, the highest level since December 2021.
This surge in informal employment drove a net gain of 670,991 jobs for the month, the best performance of the year. However, experts warn that the reliance on informal jobs poses a significant threat to potential economic growth. Gabriela Siller, director of economic analysis at Banco Base, noted that Mexico's informal sector only generated 25.38% of the country's GDP in 2024, despite employing more than half of all workers.
The informality rate in Mexico stood at 56.20% in July, up from 55.16% throughout 2026, surpassing 54.87% in 2025 and 54.27% in 2024.
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