MexECON Blog

October Unemployment Falls to 4.9 Percent

Mexico's October unemployment rate fell to a seasonally-adjusted 4.9%, down from the revised 5.0% in September but still above the 4.8% reading in August.  For comparison, the unemployment rate has averaged approximately 5.0% over the last six months.  The report was released today by INEGI, the official statistics agency.

Comment:  After posting an uncomfortable rebound in the first half of 2013, joblessness in Mexico now appears to be on a gradual downtrend again.  That is consistent with the economy's return to growth in the third quarter after a decline in the second quarter.  Mexican exports have firmed a bit in recent months, which has helped lift manufacturing activity, and some aspects of domestic demand have found their footing as well.  Nevertheless, Mexico continues to face headwinds from tight fiscal policy, falling construction activity, and concerns that the political squabbles north of the border will cut U.S. demand again.  Improving employment prospects may encourage more consumer spending, but the improvement to date is still too limited to bring about a dramatic strengthening in the economy.

Patrick Fearon, CFA
Vice President, Fund Management

                                                 Mexico's Unemployment Rate
                                                  Seasonally Adjusted, Percent
                                                            Source:  INEGI
Unemployment 1310

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