Mexico formal employment and consumer spending stagnate

Mexico's formal employment and consumer spending showed signs of stagnation in July 2026. According to data from the Mexican Social Security Institute (IMSS), formal employment experienced a slight monthly contraction of 0.05% in seasonally adjusted terms, representing a net loss of 19,500 jobs. While annual growth stood at 1.5%, this figure excludes the impact of Digital Platform Workers (TPD), whose inclusion primarily reflects the formalization of existing roles rather than new job creation. When excluding TPD, annual growth drops to 1.0%.

Economic indicators suggest a cooling trend in the industrial and consumer sectors. Manufacturing employment has faced a prolonged decline, marking 40 consecutive months of year-on-year contraction as of June 2026. Additionally, INEGI nowcast data indicates that household consumption stalled in July, showing 0.0% month-on-month growth compared to a 0.2% increase in June. These trends reflect reduced momentum in both productive investment and domestic consumption.