Exports are increasing, but the GDP is not
Despite rising exports, Mexico's economy is struggling to create jobs, with formal employment decreasing for the first time since 2009.
In January 2026, Mexico experienced a decline in formal employment for the first time since 2009, highlighting economic instability. The country requires at least 1.2 million new jobs annually to accommodate youth entering the workforce, but recent reports show a dismal job creation rate, with only 109,000 formal jobs generated in 2024 and a mere 73,000 forecasted for 2025. In stark contrast, 8,000 formal job positions were lost in January 2026, leaving many young Mexicans facing uncertain futures.
The consequences of this job scarcity could bear significant social implications, as history demonstrates that frustrated youth without stable employment often lead to social unrest. The article draws parallels with social outbursts witnessed in other countries such as Spain, France, Brazil, and Chile, where economic challenges and high unemployment have fueled protests and demands for change. This situation is reflective of a broader pattern in Latin America, where a considerable portion of employment exists outside the formal fiscal and pension systems, exacerbating the job crisis.
The article indicates a concerning trend in Mexico's economic growth, which appears insufficient to support the workforce needs, raising alarms about the potential societal consequences. As low economic growth persists, strong job creation becomes imperative to stave off discontent among the youth. Stakeholders are urged to address the employment gaps swiftly to prevent a repeat of the social unrest seen in other nations during economic downturns.