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