May Job Losses Attributed to Seasonal Decline

Mexico's Institute of Social Security (IMSS) reported the loss of 29,922 formal sector jobs in May, marking a 0.1% monthly drop in affiliations. Total registered employment closed the month at 22.7 million workers, according to the institute's monthly report.

The decline represents the second-largest job loss for May since the pandemic, and the worst on record since 2009 when excluding the COVID period, according to figures cited by Bloomberg Línea. The IMSS attributed the drop to seasonal factors in agriculture, where payrolls contract annually as planting and harvest cycles conclude. The agency also cited the cancellation of a fraudulent employer registry that had concentrated workers without genuine employment relationships.

Employment Figures Key to Economic Health

Formal job creation matters in Mexico because it serves as the most visible barometer of macroeconomic health and a central metric that Mexico's central bank (Banxico) monitors when calibrating interest rate policy.

Despite May's setback, Mexico created 346,637 jobs over the past twelve months, representing 1.5% annual growth, the highest figure in twenty months, according to El Financiero. Permanent positions comprise 86.8% of new jobs, hitting a record 19.7 million, while base wages jumped to 671.3 pesos daily, a 6.6% nominal annual increase that translates into real gains against inflation.

However, the number of employer registrations logged a 23rd consecutive month of declines, ending May at 1.016 million employers and losing 26,393 registrations over the past year. The IMSS also reported that the digital platforms reform added beneficiaries to the insured population.

June Data Expected in July

The IMSS will release June employment figures in July, when affiliation typically rebounds due to seasonal patterns in commerce and light manufacturing. Employment data will be crucial for assessing second-quarter impacts on domestic consumption and investment flows announced during the first half of the year.

Sources

  • https://www.elfinanciero.com.mx/economia/2026/06/09/imss-reporta-caida-de-29-mil-900-empleos-formales-en-mayo/
  • https://www.bloomberglinea.com/latinoamerica/mexico/mexico-pierde-29922-empleos-formales-mientras-espera-algun-impulso-por-el-mundial/