MexECON Blog

April Unemployment Rises to 5.2 Percent

In a report today from INEGI, the official statistics agency, Mexico's April unemployment rate rebounded to a seasonally-adjusted 5.2%, but March joblessness was revised downward to just 4.9%.  The three-month average of Mexican unemployment is now at its lowest since early 2009.

Comment:  Mexican unemployment has fallen significantly from its cycle peak of 5.9% in summer 2009, and even though it is coming down only gradually and unevenly, the improvement has been enough to help give Mexican consumers more confidence and spur increased consumption spending.  That is important because incoming reports have shown moderating export growth, and there are reasons to believe worldwide industrial demand and inventory rebuilding will continue to slow in the coming months.  As long as exports and industrial activity do not weaken too much, the improvement in the labor market and lower unemployment could support enough domestic spending to keep the economy growing well.

Patrick Fearon, CFA
Vice President, Fund Management

Mexico's Unemployment Rate
Seasonally Adjusted, Percent
Source:  INEGI
Unemployment 1104

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