MexECON Blog

October Unemployment Rises to 4.8 Percent

Mexico's October unemployment rate rose to a seasonally-adjusted 4.8%, up from 4.7% in September but still below the rate in August.  Joblessness in October was also slightly below the average of 4.9% over the preceding twelve months.  The report was released last Friday by INEGI, the official statistics agency.

Comment:  In spite of the slight rise in unemployment during October, the Mexican labor market still appears to be improving gradually.  Rising exports, increased industrial production, and expanding domestic demand have all combined to improve hiring.  Decreased emigration to the United States and business caution in the face of economic risks from abroad have likely kept the rate of joblessness higher than it otherwise would be, but unemployment is still trending downward.  The improving labor market is particularly important because it may reduce the risk that high inflation will dampen consumer spending.  Indeed, recent data show Mexican retail sales rose strongly in late summer. 

Patrick Fearon, CFA
Vice President, Fund Management

                                         Mexico's Unemployment Rate
                                            Seasonally Adjusted, Percent
                                                       Source:  INEGI
Unemployment 1210

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