Mexico registers a record 1.26 million formal job appointments in July, with gig workers receiving benefits
In a significant turn of events, the Mexican formal sector has witnessed a surge in job creation and wage increases, thanks to recent labor law reforms and the implementation of a pilot program for digital platform workers.
According to the Mexican Social Security Institute (IMSS), the average daily base salary for a formal sector worker in Mexico stands at 614.3 pesos (approximately US $33) as of July 2025, marking a 4.3% year-on-year increase. This figure is more than double the daily minimum wage in most parts of the country.
The reforms, including those affecting digital platform workers, have contributed to record formal job growth and wage increases in the formal sector. The IMSS reported a record 23.59 million workers registered on July 31, with the total number of formal sector jobs increasing by 1.353 million between January and July, resulting in a 6.1% increase in formal sector workers compared to the end of 2020.
However, it's worth noting that the majority of these new jobs are temporary or contract positions. Permanent formal sector jobs created this year amount to only 155,591, representing 11.5% of the total. The creation of permanent formal sector jobs declined 51.7% compared to the first seven months of 2024.
The month-over-month increase of 1.266 million formal sector jobs was primarily due to the commencement of the pilot program for digital platform workers. Excluding 2020, this has been the worst start to a year for permanent formal sector job creation since 2009.
Despite the growth, average salaries in Mexico remain significantly lower than in developed countries. However, they are rising steadily due to economic growth and labor reforms. The total workforce in Mexico is large, with over 61 million people, and wage levels can vary by sector, experience, and region.
The reform requiring the incorporation of gig workers to IMSS was supported by both digital platform companies and their workers. One of President Claudia Sheinbaum's commitments was to make social security benefits mandatory for "workers of apps" such as Uber, DiDi, and Rappi. Digital platform workers now have access to formal sector employment benefits, including medical and accident insurance, government childcare centers, and pension and housing programs.
Interestingly, 90% of more than 1 million digital platform workers in Mexico are men, while just 10% are women. To have full access to formal sector employment benefits, digital platform workers need to earn at least 8,480 pesos (US $456) per month.
The six-month pilot program began on July 1 and saw job growth in 10 other states, including Hidalgo, Michoacán, Baja California Sur, Aguascalientes, Nuevo León, Colima, Quintana Roo, Jalisco, Guanajuato, and Querétaro. Notably, Mexico state and Mexico City recorded the largest job growth, with annual increases of 41.7% and 15.4% respectively.
The state of Tabasco experienced the biggest drop in formal sector jobs, with a 9.6% decrease, while Nayarit had a 3% decrease.
These developments in the Mexican formal sector are a testament to the government's commitment to improving workers' conditions and fostering economic growth. As the pilot program continues, it will be interesting to see how these trends evolve and what impact they will have on the overall economy.
[1] Source: Mexican Social Security Institute (IMSS) [3] Source: World Bank [5] Source: National Institute of Statistics and Geography (INEGI)
- The surge in job creation and wage increases in the Mexican formal sector has also sparked interest in the news sector, with journalists reporting on the implications for the overall economy.
- The political landscape in Mexico has been influenced by discussions surrounding the labor law reforms and their impact on the business sector.
- The success of the Mexican formal sector's job growth and wage increases has caught the attention of the finance industry, with analysts predicting positive trends in the stock market.
- The cultural shift towards formal employment and improved worker conditions has been covered extensively in lifestyle magazines and online publications.
- The education-and-self-development community is discussing the potential benefits of the labor reforms, as a well-funded workforce may lead to a more informed and productive society.
- The sports world has also taken note of the improvements in the Mexican formal sector, as better wages could allow athletes to focus more on their training and less on financial concerns.
