MexECON Blog

April Unemployment Rises to 5.1 Percent

Mexico's April unemployment rate rose to a seasonally-adjusted 5.1%, compared with 5.0% in March and 4.7% in February.  With the rise in April, joblessness in Mexico is now slightly above its six-month average of approximately 5.0%.  The report was released today by INEGI, the official statistics agency.

Comment:  Mexico's economy hit a soft spot at the turn of the year, with first-quarter gross domestic product (GDP) up just 0.8% from the same period one year earlier.  Reflecting the slowdown, unemployment has moved up to its highest sustained levels since mid-2011.  Several economic sectors - including exports, manufacturing, and fixed investment - have recently shown signs of rebounding, but the improvement is still tentative, and it has not yet boosted hiring.  Stronger hiring will likely take a bit longer.  In the meantime, joblessness is likely to remain above its most recent low in summer 2012.  Consumption spending, which has been a key source of Mexico's economic growth in the latest quarters, could continue to be tepid for a few more months.

Patrick Fearon, CFA
Vice President, Fund Management

                                           Mexico's Unemployment Rate
                                             Seasonally Adjusted, Percent
                                                       Source:  INEGI
Unemployment 1304 B

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