MexECON Blog

September Unemployment Falls to 4.7 Percent

Mexico's September unemployment rate dropped to a seasonally-adjusted 4.7%, reaching its lowest level since before the global financial crisis.  In August, the unemployment rate had risen to 4.9%.  The report was released today by INEGI, the official statistics agency.

Comment:  Since hitting a cycle peak of 6.0% in September 2009, Mexico's unemployment rate has been falling only gradually.  The Mexican economy has been growing extraordinarily quickly, but decreased emigration to the United States may be keeping joblessness higher than it would otherwise be.  Now, with the big drop in joblessness during September, it seems the labor market may finally be solidifying at a quicker pace.  Continued strengthening in the labor market would be particularly important because it could reduce the risk that accelerating inflation will dampen consumer spending, even as economic problems abroad threaten to weigh on Mexican exports.

Patrick Fearon, CFA
Vice President, Fund Management

                                        Mexico's Unemployment Rate
                                          Seasonally Adjusted, Percent
                                                   Source:  INEGI
Unemployment 1209

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