As of May 2026, the Economically Active Population increased by approximately 300,000 people between June 2025 and May 2026, rising from 61.8 million to 62.1 million, according to the May 2026 National Occupation and Employment Survey (ENOE) done by the National Institute of Statistics and Geography. Of that population, 60.4 million people were employed.
Employment was distributed across several key sectors, showing the breadth of the country’s labor market:
Employment by Economic Sector
- Services: 26.8 million people
- Commerce: 12.0 million people
- Manufacturing: 9.8 million people
- Agriculture, Livestock, Forestry, Hunting, and Fishing: 6.0 million people
- Construction: 4.9 million people
- Other Economic Activities: 381,000 people
- Not Specified: 473,000 people
Compared with May 2025, the sectors with the largest employment gains were:
- Restaurants and accommodation services: Added 404,000 people
Commerce: Added 323,000 people
Other services: Added 253,000 people
Manufacturing: Added 167,000 people
Labor Demand Is Expanding Across Multiple Sectors
According to BBVA Research, the country remains a service-based economy, with services continuing to support GDP growth even as manufacturing and construction faced pressure in 2025.
Retail trade, manufacturing, and agriculture remain the three sectors with the highest labor demand in Mexico. Together with other services, these activities account for more than half of total employment, representing 31.8 million workers.
For 2026, BBVA projects the creation of 343,000 additional jobs, with tourism and retail trade taking the lead in this growth with nearly 90,000 new jobs each, followed by transportation with 46,000, construction with 38,000, and recreation with 24,000.
Labor Market Availability and Employment Conditions
According to INEGI, the unemployment rate remained at 2.8% in May 2026, representing approximately 1.7 million people actively seeking employment. The rate increased slightly by 0.1 percentage points compared with the previous year, indicating a labor market that continues to generate employment while maintaining a consistent supply of available workers.
Beyond unemployment, in May 2026, 4.2 million people were classified as underemployed, representing 7.0% of the employed workforce, slightly below the 7.1% recorded a year earlier. For U.S. employers, this points to an additional pool of active workers who may be open to more stable, full-time, or growth-oriented job opportunities.
Why Mexico’s Younger Workforce Matters to Business Expansion
Mexico’s median age is 30 years, compared with 39 in the United States and 40 in Canada. For companies evaluating expansion, this demographic gap translates into practical business advantages.
Mexico’s younger demographic profile gives it a stronger long-term labor advantage than many aging economies. As the U.S. and Canada face workforce pressures tied to retiring workers and slower labor force growth, Mexico offers a large working-age population that can support long-term hiring needs.
Mexico's Leading Universities
UNAM & IPN
Mexico City is home to two of the country’s most influential academic institutions. On one hand, the National Autonomous University of Mexico (UNAM) leads the nation in graduate output across a broad spectrum of occupations, and it also carries the top national position in research productivity, with notable strengths in:
- Biological Sciences
- Chemistry
- Earth & Environmental Sciences
- Physical Sciences
Its research leadership is further evidenced by global recognition in specialized areas such as Astronomical Sciences (48 publications) and Particle & High Energy Physics (15 publications), along with contributions in Macromolecular and Materials Chemistry and Biochemistry & Cell Biology.
Complementing this, the Instituto Politécnico Nacional (IPN) stands as a cornerstone of technical education in Mexico, offering more than 290 programs concentrated in engineering, applied sciences, and technology. IPN’s industry-oriented training model equips graduates to address the needs of sectors such as manufacturing, infrastructure, and applied research.
Tecnológico de Monterrey
The Monterrey metropolitan area is home to Tecnológico de Monterrey (ITESM), a leading academic and entrepreneurial hub whose influence extends far beyond its region. According to the 2022 QS World University Rankings, it ranks in the 161st place globally. Its academic prestige is reinforced by the 2021 Times Higher Education Latin America University Rankings, where it ranks 1st in Mexico and 4th in Latin America. ITESM is also the only Latin American university featured in the Princeton Review’s 2022 Top Schools for Entrepreneurship, achieving 5th place globally in undergraduate entrepreneurship programs.
Additional Notable Institutions
Nationwide, institutions like the Universidad Tecnológica de México (UNITEC) also contribute significantly to the professional landscape. With campuses across the Mexico City metropolitan area, Jalisco, and Querétaro, UNITEC provides graduates in business, engineering, health sciences, and architecture, and is recognized for the speed at which its students enter the labour market.
Together, these hubs ensure a steady flow of qualified professionals in areas critical to the country’s growth: engineering, technology, health sciences, and business. By connecting regional strengths with global industry demands, they reinforce Mexico’s position as a reliable source of specialized talent—a foundation that supports both domestic development and its expanding role in the international economy.
Nearshoring in Mexico: A Transformative Opportunity for Talent Development and Economic Growth
Nearshoring represents an unprecedented opportunity for Mexico, with projections estimating the creation of 2 to 4 million new jobs by 2030. This surge is driven by global companies relocating production closer to key markets, aiming to reduce costs, increase supply chain resilience, and capitalize on Mexico’s strategic geographic position. According to Kenneth Smith (former Mexican Chief Negotiator for USMCA), investments linked to this trend are expected to reach between $30 and $50 billion annually, generating significant momentum in advanced manufacturing, technology, logistics, and health sciences.
This outlook is reinforced by Mexico’s recent foreign direct investment (FDI) performance. Between January and December 2025, FDI reached US $40.8 billion.
A Growing Pipeline of Business and Technical Talent
According to the OECD, 93% of first-time higher education students enroll directly in bachelor’s degree programs, indicating that most students pursue professional careers rather than shorter academic pathways.
Moreover, data from the Statistical Yearbook of Higher Education Enrollment shows that during the 2024–2025 academic year, Mexico produced approximately:
- 236,499 graduates in Business and Administration
- 174,079 graduates in Social Sciences and Law
- 169,616 graduates in Engineering, Manufacturing, and Construction
- 48,678 graduates in Information and Communication Technologies
The talent pipeline is also becoming more diverse. Women now represent 53% of first-time university entrants, compared with 49% a decade ago, reflecting broader participation in higher education across the country.
Upper Secondary Education Is Expanding the Future Talent Base
Over the past nine academic years, the number of upper secondary graduates increased from 747,942 students in the 2016–2017 academic year to 1,009,855 graduates in 2024–2025. This represents an increase of nearly 35%.
The latest academic year also marked an important milestone, as Mexico surpassed one million upper secondary graduates for the first time.
Talent Is Concentrated in Mexico’s Business Hubs
Graduate production is strongest in many of the same regions that have become major destinations for manufacturing, technology, logistics, and shared services.
During the 2024–2025 academic year, the largest number of graduates came from:
- Mexico City: 161,553
State of Mexico: 113,656
Jalisco: 62,725
Nuevo León: 58,589
Puebla: 54,918
Veracruz: 47,030
Guanajuato: 40,911
Additionally, many of Mexico’s U.S. border states, including Nuevo León, Baja California, Chihuahua, Coahuila, and Sonora, each individually produce more than 20,000 graduates each year. For companies considering nearshore operations, this means talent availability is not limited to central Mexico; it is also present in regions with direct proximity to the U.S. market.
Industry Is Helping Build Mexico’s Talent Pipeline
Mexico’s talent development is not limited to universities and public education. Industry participation is also helping prepare workers for modern business and technical roles.
Volkswagen de México has invested in workforce development for more than five decades through its vocational training programs. More recently, the company expanded its efforts by launching Talento Joven, which places university students inside real business and manufacturing projects, and New Auto, New Engineers, an initiative that strengthens STEM education by training facilitators who bring engineering and technology methodologies to schools in Puebla.
Bosch has followed a similar path. Beyond operating technical training centers for decades, the company collaborates with 33 universities across Mexico, supports scholarships and professional development programs, and opened an Embedded Systems Laboratory with Tecnológico de Monterrey to provide engineering students with hands-on experience in software, robotics, and automotive technologies.
The same trend extends beyond the manufacturing sector. Since 2016, Nestlé México has operated a work-based education program that combines classroom instruction with practical training in manufacturing, supply chain, sales, and corporate operations. Students graduate with nationally recognized professional certifications and the opportunity to transition directly into the company’s workforce.
Cross-Border Partnerships Are Also Strengthening Workforce Development
Talent development is also becoming more binational. Cross-border organizations are helping prepare students for the types of industries that are expanding across the U.S.-Mexico region.
One example is the Arizona-Mexico Commission, whose Education Committee promotes collaboration between Arizona and Sonora through bilingual training, student and faculty mobility, and joint academic programs. More importantly for employers, the committee has identified specific workforce development areas tied to future industry demand: artificial intelligence, semiconductors, water treatment, and green energy.
AI Demand Is Changing Mexico’s Labor Market
Artificial intelligence is becoming part of Mexico’s labor market at an accelerating pace. According to PwC’s 2026 Global AI Jobs Barometer, the number of job postings requiring AI-related skills more than doubled in 2025, increasing from approximately 33,000 positions in 2024 to 68,000 in 2025. AI-related roles now represent 1.7% of all job postings in the country.
The growth is not limited to software developers. Most AI hiring in Mexico is concentrated among professionals who use AI as part of their daily work rather than building AI systems themselves. This suggests that businesses are increasingly seeking employees who can integrate AI across finance, customer service, engineering, manufacturing, marketing, and other business functions.
Mexico Is Expanding Its Digital Skills Pipeline
Mexico is expanding its digital talent pipeline through collaboration between government institutions, universities, technical schools, and global technology companies.
One example is the Public Training Center for Artificial Intelligence, which provides tuition-free training in artificial intelligence, machine learning, cloud computing, cybersecurity, data analytics, and software development. The initiative includes participation from organizations such as INFOTEC, Tecnológico Nacional de México, AMITI, and leading technology companies.
Beyond university education, programs such as Aprendices Digitales México are bringing certifications in cloud administration, cybersecurity, and artificial intelligence into technical high school programs. Regional initiatives such as Guanajuato’s TALEN-TIC are also helping students develop projects in engineering, electronics, mechatronics, biotechnology, and information technologies.
Together, these initiatives show that Mexico is building multiple pathways for digital talent development, combining formal education, technical training, certifications, and employer collaboration.
Preparing for the Next Generation of Work
Mexico’s talent development is moving beyond traditional university degrees. As AI, automation, and digital transformation change workforce needs, education and training programs are placing more emphasis on practical skills, certifications, microcredentials, online learning, and hands-on experience.
The IMCO Compara Carreras 2025 report highlights that employers are giving greater value to skills such as artificial intelligence, data analytics, cybersecurity, cloud computing, digital literacy, creativity, and leadership.
This shift reflects where Mexico’s talent ecosystem is heading: a combination of formal education, continuous learning, professional certifications, and industry collaboration to prepare workers for changing business needs.
What These Trends Mean for Companies Expanding into Mexico
Taken together, these trends show that Mexico’s labor market is not only expanding but also becoming more aligned with the needs of modern business. A young population, growing graduate pipeline, strong regional talent hubs, employer-led training programs, cross-border partnerships, and digital skills initiatives all point to a workforce that can support long-term business operations.
For companies planning their next stage of growth, Mexico offers more than labor availability. Its combination of demographic strength, industry participation, cross-border collaboration, and digital skills development makes the country a relevant option for building teams that can support evolving business needs.
