Participation in the workforce declined by nearly 300,000 during the first half of 2026 as June employment figures were the second-worst of the year, according to the National Survey of Occupation and Employment (ENOE) carried out by the national statistics agency INEGI.
ENOE data indicates that 319,633 jobs were lost last month and said the decline was linked to a contraction in both formal and informal employment, although more pronounced in the latter.
The negative June figures — topped only by the loss of 705,427 jobs in January — resulted in a deficit of 293,227 jobs through the first half of the year. Economists say Mexico needs to create 1.2 million jobs annually just to keep pace with labor force growth.
The June report is particularly disappointing as there were high expectations for the economy since Mexico was co-hosting the FIFA World Cup.
“Employment figures show the labor market remained weak, despite … the World Cup, which failed to boost job creation, even temporarily,” the financial group Banco Base stated in an analysis. “The event’s effect was marginal and likely concentrated only in the host cities.”
ENOE said Mexico’s unemployment rate stands at 2.9%, its highest figure since September 2025. At the same time, the economically inactive population (EIP) increased by 285,856 people in June compared to May.
Banco Base interpreted the rise in the EIP as an indicator that “some of those who stopped working stopped looking for employment,” suggesting that “the unemployment rate alone does not reflect the magnitude of the deterioration in the labor market.”
The official employment rate for the population aged 15 and over registered at 58.8%, according to seasonally adjusted figures. This represents declines for both month-to-month (–0.2%) and year-on-year (–1.0%).
The economic think tank México ¿cómo vamos? Identified another significant structural challenge: low female participation. In June 2026, the labor force participation gap between men and women stood at approximately 28.3%.
With reports from El Economista and México ¿cómo vamos?
