- Mexico: In January, the unemployment rate rose to 2.7% and the labour force participation rate fell to 58.5%; Mexico closed 2025 with an annual increase of 10.8% in FDI
MEXICO: IN JANUARY, THE UNEMPLOYMENT RATE ROSE TO 2.7% AND THE LABOUR FORCE PARTICIPATION RATE FELL TO 58.5%
In January, the unemployment rate rose to 2.7% from the previous 2.4% (and matching its January 2025 level), while the labour force participation rate declined to 58.5% (vs. 59.1% previously). As a result, the economically active population stood at 61.331 million people during the period. Additionally, the underemployment rate—defined as the share of people seeking to work more hours—stood at 6.1%, slightly below the previous 6.2%. However, the informality rate increased to 54.9% (vs. 54.1% a year earlier), in line with the recent weakness observed in IMSS-affiliated job creation (charts 1, 2, and 3).
MEXICO CLOSED 2025 WITH AN ANNUAL INCREASE OF 10.8% IN FDI
Mexico closed 2025 with 40.871 billion dollars in Foreign Direct Investment (chart 4), according to Banco de México data, an annual increase of 10.8% driven mainly by new investments, which grew 79.5% and increased their share of the total; meanwhile, reinvested earnings amounted to 27.649 billion dollars and fell by -3.70% due to higher dividend distributions, while intercompany accounts grew 14.25%. According to the Ministry of Economy, the United States remained the main source of capital, followed by Spain and Canada, and Mexico City captured more than half of total inflows. Although the momentum reflects productive integration with North America and the country’s appeal for new projects, analysts noted that Mexico has yet to fully capitalize on the global reconfiguration of supply chains due to institutional constraints and risks such as higher labour costs and a more fragmented geopolitical environment.
—Rodolfo Mitchell, Miguel Saldaña & Martha Cordova
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