Mexico labor market faces formal job losses in Edomex and Baja California

The State of Mexico experienced a significant contraction in its formal labor market, losing 22,925 registered jobs between May and July 2026. According to data from the Mexican Social Security Institute (IMSS), the decline included permanent positions, with the sharpest drop occurring between June and July, when 18,965 jobs were lost in a single month. This trend contrasts with the national recovery seen in June, where Mexico added over 61,000 jobs.

In Baja California, legislative efforts are underway to address business closures and job losses. Following the closure of more than 9,600 formal companies and the loss of 13,000 jobs at the end of 2025, Deputy Evelyn Sánchez Sánchez has proposed reforms to the State Law for Competitiveness and Economic Development. The initiative seeks to shift public support for micro, small, and medium-sized enterprises (MSMEs) from a model focused on project launches to one that provides technical assistance and follow-up to ensure business consolidation and job retention.