Mexico's Growth stalls below 1% and formal jobs slip by nearly 30,000 in May

Legislator Rubén Moreira warned that Mexico will not reach even 1% GDP growth in 2026, citing the OECD's 0.8% forecast and a sharp slowdown in new foreign direct investment that fell from about $17 billion in the first 18 months of the previous administration to roughly $10 billion under the current government. He also highlighted rising current‑government spending, large subsidies to projects such as the Tren Maya, and concerns over the sustainability of the IMSS pension scheme that supports about 250,000 workers.

The Mexican Institute of Social Security (IMSS) reported a loss of 29,922 formal jobs in May 2026, reducing cumulative formal‑job creation to 201,605 positions since January. The drop was attributed to seasonal reductions in agricultural hiring and the cancellation of a fraudulent employer registry. Despite the monthly decline, total IMSS‑affiliated jobs reached a record 22.7 million, and formal employment grew 1.5% year‑on‑year over the past 12 months. The labour market remains highly informal, with 55% of occupied workers outside the formal sector.