Mexico's formal job creation slows, losing nearly 30,000 positions in May

Mexico's formal employment sector experienced a notable slowdown in May 2026, losing nearly 30,000 jobs. This downturn reduced the cumulative job creation for the year to 201,605 positions, a decrease from the 231,527 jobs recorded by the end of April.

The Mexican Social Security Institute (IMSS) reported that despite the monthly loss, the total number of affiliated jobs reached 22,718,681 by the end of May. This figure represents the fifth-highest recorded and the largest for the month of May. Permanent positions constituted 86.8% of the total, with temporary jobs making up the remaining 13.2%.

The IMSS attributed the May decline primarily to the seasonal reduction in agricultural employment, a common occurrence as planting and harvesting seasons conclude. Additionally, the institute pointed to the cancellation of a fraudulent employer registration that had artificially inflated job numbers. Excluding this extraordinary effect, the IMSS stated that job creation would have maintained a positive trajectory.

Over the past 12 months, formal employment in Mexico grew by 346,637 positions, a 1.5% year-on-year increase. Key growth sectors included transport and communications (13.5%), extractive industries (4.1%), and social and communal services (2%). Conversely, manufacturing saw a 1.4% decline, and agriculture fell by 4.3%. The average base contribution salary reached a record high of 671.3 pesos daily in May, a nominal annual increase of 41.3 pesos.

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if we isolate this extraordinary effect, the number of jobs would maintain a positive trajectory in the generation of formal employment.