INEGI’s establishment employment index held at 97.5 in May, flat from April and down 1.3% from a year earlier, signaling stalled formal hiring even as broader national employment hit a record.
Real remuneration also weakened for a second straight month: IGRESE fell 0.6% to 123.5 and average real remuneration slipped 0.5% to 126.7, though both remained slightly above May 2025 levels.
Formal payroll softness was broad-based, with salaried staff flat on the month and down 1.1% year on year, while non-salaried workers rose 0.1% monthly but fell 3.3% annually.
The divergence reflects a labor market shifting toward informal and self-employed work—Mexico’s informality rate rose to 55.2% in May from 54.9% a year earlier, helping lift total employment to 60.4 million.
Rising labor costs, including a 13% minimum-wage increase in January, higher pension contributions and longer vacation entitlements, are squeezing employers and may keep any near-term hiring recovery concentrated outside direct payrolls.