Over half of Mexico's workforce, 33.4 million people, now toil in informal employment, a figure that rose to 55.0 percent in August from 54.8 percent one year earlier. This surge in precarious labor coincides with a significant decline in traditional sectors, displacing native workers from stable jobs. The national statistics institute INEGI reported Friday that unemployment itself edged up to 3.0 percent in August, higher than both July and August one year earlier.
The number of unemployed individuals reached 1.88 million, an increase of about 87,000 compared to one year earlier. Meanwhile, the overall labor force expanded by 1.3 million over the same period, reaching 62.6 million people. Employment itself saw a rise of 1.2 million over the year, totaling 60.7 million.
The share of people aged 15 and over actively working or seeking work increased to 59.3 percent from 58.8 percent. Yet, the number of individuals jobless for six months to a year nearly doubled, reaching 158,755, up from 87,128 one year earlier. Another 7.0 percent of workers, some 4.3 million people, found themselves underemployed, meaning they desired and were available for more hours.
The Precarious Economy
The definition of informal employment, as outlined by INEGI, includes working without social-security protection or for an unregistered business. This growing segment of the economy leaves millions vulnerable. INEGI's broadest gauge, "critical working conditions," now encompasses 37.8 percent of workers, a rise from 37.3 percent one year earlier. This metric captures the true extent of economic insecurity facing the nation's populace.
Displacement of Traditional Labor
The shift away from productive, stable employment is stark. Manufacturing shed 263,000 jobs in August, compared to one year earlier, employing only 9.7 million people. Farming lost 290,000 workers, while retail and wholesale trade saw a reduction of 161,000 positions. These are the bedrock sectors that once provided stable livelihoods for countless native families.
In contrast, other sectors saw growth, often in less secure roles. Restaurants and hotels added 538,000 jobs. A broad category of "other services" gained 790,000, and government employment expanded by 242,000. Construction also added 146,000 positions.
Globalist Mechanisms at Play
External economic pressures continue to reshape Mexico's internal labor market. The Federal Reserve Bank of Dallas reported that formal employment in Mexico declined by approximately 9,100 jobs in August, marking a second consecutive monthly fall. This external assessment highlights the vulnerability of the national economy to foreign influence.
Washington's decision in July not to renew the US-Mexico-Canada Agreement (USMCA), opting instead for annual reviews, signals a shift in the globalist trade framework impacting Mexico. Most goods still enter the US duty-free, but tariffs remain on key exports like cars, auto parts, machinery, and steel. The United States accounts for about 83 percent of Mexico's exports, according to the consultancy Deloitte.
New foreign investment in Mexico plummeted by 13 percent in the first half of 2026, Reuters found. Fixed investment also fell year on year for 19 straight months through May, as reported by IMEF, Mexico’s finance executives’ institute. These figures underscore a broader disengagement of capital, leaving national development vulnerable. Even as IMSS-registered jobs rose by 343,556 over twelve months, the decline in traditional sectors and the rise of precarious work paint a grim picture for the native working class.