MexECON Blog

January Unemployment Falls to 4.8 Percent

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
                                                         Source:  INEGI
Unemployment 1201

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