Mexico's January unemployment rate fell to a seasonally-adjusted
4.8%, down from 5.0% in December and 5.1% in November.
Joblessness in Mexico is now at its lowest since last October, when
it was also 4.8%. The report was released on Friday by INEGI,
the official statistics agency.
Comment: Mexican unemployment is
continuing to fall, but the rate of decline is frustratingly
slow. Nevertheless, the job market has improved enough to
boost consumer confidence and encourage greater consumer
spending. The January consumer confidence index, released
several weeks ago, showed a surge in optimism. December
retail sales declined on a month-over-month basis, but they were
still up a healthy 3.5% from one year earlier, even after stripping
out price increases. Because it appears that Mexican exports
are set to continue rising, even as domestic demand remains on the
upswing, Mexican unemployment is likely to continue falling slowly
in the coming months.
Patrick Fearon, CFA
Vice President, Fund Management
Mexico's Unemployment Rate
Seasonally Adjusted, Percent