Share of employment in the informal sector in Mexico Q1 2015-Q3 2023

In the third quarter of 2023, the share of employment in the informal sector in Mexico was 54.8 percent. Throughout the whole period under consideration, the fourth quarter of 2015 accounts with the highest share for informal employment with a 57.9 percent. In the contrast, the second quarter of 2020 recorded the lowest share in this sector with around 51 percent.

Labor Market overview

In 2022, the labor force participation rate in Mexico has remained stable at 65 percent. Nearly 58.5 million people are employed and 1.8 million are unemployed, encompassing over 60 million with those who are fully employed, partially employed, and actively seeking employment. Furthermore, the majority of the workforce was concentrated in the services sector, accounting for nearly two-thirds of the total labor market.  

Unemployment

Mexico has experienced a consistent decrease in the unemployment rate over the last three years, reaching a rate of 3.31 percent in 2022. The youth population has been particularly affected by this trend, and their level of educational attainment has not been sufficient to mitigate these effects. The primary reason for unemployment has been the termination of contracts, and the lack of job opportunities has resulted in nearly 920,000 people with higher education degrees being unemployed as of 2023.