MexECON Blog

April Unemployment Falls to 5.0 Percent

Mexico's unemployment rate fell in April to a seasonally-adjusted 5.0%, after a revised reading of 5.1% in March and a reading of 5.2% in February.  Mexico's unemployment rate is now almost back down to its cycle low of 4.8% last October.  The report was released on Friday by INEGI, the official statistics agency. 

Comment:  The new downtrend in Mexican joblessness probably reflects improved economic growth at the beginning of 2012.  As the New Year unfolded, Mexican exports accelerated again, industrial activity strengthened, and hiring improved.  Nevertheless, Mexican unemployment has been falling only very gradually, matching the trend in the United States.  The main risk now is that the European debt crisis is worsening again.  If the situation in Europe comes to a head in the coming months, economic activity could slow all around the globe.  That would likely put a stop to any further improvement in Mexico's unemployment rate and undermine the strong uptrend in consumer spending that has helped boost the country's growth rate.

Patrick Fearon, CFA
Vice President, Fund Management

                                          Mexico's Unemployment Rate
                                           Seasonally Adjusted, Percent
                                                        Source:  INEGI
Unemployment 1204

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