Mexico labor informality rises to 56.2% as regional poverty fluctuates

Recent data from the National Institute of Statistics and Geography (INEGI) reveals a complex labor landscape in Mexico. While the national labor poverty rate decreased by 3.2 percentage points to 31.9% between the second quarter of 2025 and 2026, several states experienced significant setbacks. Sinaloa, Coahuila, and Michoacán recorded the highest increases in labor poverty, with Sinaloa seeing a 3.7 percentage point rise.

Simultaneously, labor informality has seen a notable increase. In July 2026, the informality rate reached 56.2%, affecting approximately 34.1 million people. This represents a rise from previous periods and highlights a trend where a significant portion of job growth is concentrated in the informal sector rather than formal employment.

Regional disparities remain stark. While states like Morelos and Querétaro showed substantial improvements in labor poverty, rural areas continue to face higher poverty rates (44.7%) compared to urban centers (28.3%). The unemployment rate remained relatively stable at 2.9% in July 2026.