Mexico's December unemployment rate fell to a
seasonally-adjusted 5.0%, down from 5.2% in November but still
higher than the 4.8% rate in October. The rate in December
was significantly below the 5.5% reading posted in December 2010,
and it was lower than the 2011 average of 5.2%. The report
was released today by INEGI, the official statistics agency.
Comment: Joblessness in Mexico
remains on a gradual downtrend, in spite of the global economic
slowdown since last summer. The continued fall in
unemployment probably stems in part from the fact that the U.S.
economy has regained some traction. Even as economic growth
slows in Europe and Asia, activity has started to show signs of
reaccelerating in the United States, Mexico's key export
market. In addition, there is some momentum in Mexico's own
domestic demand. Continued export growth and solid domestic
demand are likely to keep Mexican unemployment on a downtrend for
at least the next few months.
Patrick Fearon, CFA
Vice President, Fund Management
Seasonally Adjusted, Percent