The labor market in Mexico has shown significant improvements as it concluded the year 2024, with the unemployment rate falling to 2.6% during the fourth quarter, according to the latest report from the Instituto Nacional de Estadística y Geografía (INEGI). This figure marks an improvement from the 2.7% unemployment rate recorded during the same period the previous year. The report indicated 1.6 million people were unemployed from October to December 2024, reflecting only 2.6% of the economically active population (PEA), which totaled 61.1 million during the same timeframe.
Crucially, the number of employed individuals increased by 84,000, reaching 59.5 million workers as of late 2024. Notably, certain sectors of the economy contributed significantly to this growth; the service sectors—particularly social services, restaurants, accommodation, and transport—drove much of the employment increase.
According to INEGI, "Puebla alcanzó los 3.1 millones de personas económicamente activas durante el cuarto trimestre de 2024," indicating substantial activity within this region as well. This statistic highlights Puebla's importance within the broader economic metrics as it experienced notable changes from the previous year. The unemployment rate there dropped to 2.2% of the PEA, down from 2.6% reported over the same period last year.
The increase is encouraging, yet it also brought to light some issues, particularly the rise of subemployment. The report states, "La tasa de subocupación aumentó...", with 4.9 million individuals being regarded as underemployed, meaning they expressed the desire and need to work more hours than what they currently are. This indicates significant unfulfilled demand for full-time employment across various job markets.
Interestingly, the report also pointed out stark gender disparities within the employment data. "La participación laboral entre hombres y mujeres..." revealed notable inequalities, with about 75.3% of men active within the labor market compared to only 46.4% of women. Such figures raise questions about the barriers women face and highlight the need for policies addressing gender equality.
Employment trends also depicted shifts across various economic sectors. The primary sector saw the inclusion of approximately 73,000 new jobs, which encapsulates agriculture, livestock, forestry, hunting, and fishing, amounting to 17.9% of all employed individuals. Conversely, the secondary sector, which includes manufacturing and construction, reported significant job losses, shedding 111,000 positions. Manufacturing alone accounted for the loss of 73,000 jobs, and the construction industry lost another 31,000.
The tertiary sector, covering services and commerce, reflected positive dynamics with growth observed particularly within retail and various services. The report emphasized the need for continued efforts to address the challenges of labor informality, with approximately 70.7% of workers—around 2.1 million—operated under informal work conditions. This marked improvement indicates some positive changes, yet the issue persists as one of the predominant challenges facing the workforce.
Regional employment disparities are evident, with specific areas reporting higher unemployment rates than others. Tabasco led with 4.1%, followed by Mexico City at 4% and Coahuila at 3.5%. This geographical imbalance signals potential underlying economic issues tied to local industries and labor markets, emphasizing the requirement for bespoke economic strategies.
While the fourth-quarter figures project cautious optimism about Mexico's employment growth, the nuances within the data call for attention to structural problems persisting within the labor market. With the economic revival becoming more tangible, there's still work to be done to bring all segments of society along and improve the quality of available jobs.