The Center for Economic Studies of the Private Sector (CEESP) reported that 33 million Mexican workers are engaged in informal employment.

According to the CEESP, the lack of effective public policies, an overly complex regulatory framework, high labor costs, and a heavy tax burden are among the main causes of this structural issue.

In 2024, the informal economy generated 8.094 trillion Mexican pesos, equivalent to 24.5% of the country’s GDP—the highest percentage since 2003.
This undoubtedly represents a setback for decent work in Mexico.

Commerce is the sector with the highest share of informal employment, accounting for 35.7%. The construction sector ranks second, contributing 15.5%, followed by manufacturing, which accounts for 13.6% of informal labor.

The report highlights that “high costs, complexity, and aggressive tax collection policies are factors that may encourage evasion and the search for niches where fiscal contributions can be entirely avoided.”

At the same time, informal activity has served as an alternative to ease labor market pressures, as unemployed individuals have turned to it as a source of income to support their families.

It is evident that Mexico’s labor market urgently requires the implementation of models that incorporate flexibility with security and formalization.

Photo of Jorge Aguilar in Unsplash