This paper is an analysis of the economic factors that have impacted employment and the labor market in northern Mexico border states and major cities in the region. Also included is a summary of recent labor policies at the national level and in the northern border region, and an analysis of the advantages and limitations of various employment policies. It is emphasized that compared to other regions in Mexico, open unemployment rates [1] in the northern border states have decreased, even with the pressure of additional workers in the labor force. The states of Baja California and Nuevo León have made great efforts to offer training and courses that will meet the technical, industrial, and administrative needs of area employers. Employment policies have been an instrument of economic and social policy through government-funded job promotion programs. However, these programs have been only partially successful in reducing unemployment because they do not deal with the problem effectively. To increase employment levels, there must be a greater effort to create educational systems that respond to the needs of the businesses that are generating jobs, and to offer training to those who want to establish small businesses.