Economy Politics Country 2026-01-27T22:24:34+00:00

Mexico's Low Unemployment Rate Masks Industrial Sector Woes

Despite a record-low unemployment rate of 2.4%, Mexico has lost 127,200 industrial jobs. Analysts attribute this to weakening US demand, domestic economic issues, and political uncertainty, jeopardizing government plans for job creation.


Mexico's Low Unemployment Rate Masks Industrial Sector Woes

Mexico faces a paradoxical situation in its labor market. Despite achieving a historic low unemployment rate of 2.4% at the end of 2025, an analysis of the data reveals significant underlying pressures. The main drag on employment came from the industrial sector, which lost 127,200 jobs. According to Samantha Contreras, an analyst at México Cómo Vamos, this detail is not minor, as it conflicts with the goals of the 'Plan México,' which projects generating up to 1.5 million additional jobs in specialized manufacturing and strategic sectors by 2030. 'These data do not reflect an active improvement in the transformation industry sector, as stated in Plan México,' the expert said. She also explained that the loss of manufacturing jobs is related to weaker demand from the United States and a lack of solid domestic consumption. Guillermine Rodríguez, Director of Economic Studies at Banamex, noted that the deterioration in the manufacturing sector is not exclusive to last year, as signs of this weakness were already observed in 2024. The Banamex analyst stated that it is related to two factors: lower demand for goods from the United States and a lower internal dynamism. 'These elements do not contribute to confidence for new investments'.