MexECON Blog

May Unemployment Unchanged at 5.1 Percent

Mexico's May unemployment rate came in at a seasonally-adjusted 5.1%, unchanged from April but higher than the 5.0% rate in March.  If calculated to two decimal places, there was a decline in joblessness during May, but the decrease was very small, and unemployment remains slightly above its six-month average.  The report was released today by INEGI, the official statistics agency.

Comment:  Relative softness in the Mexican economy continues to keep unemployment from falling appreciably.  Some sectors of the economy seem to be in a tentative rebound, but that has not yet translated into improved hiring.  Coupled with the recent volatility in global financial markets, the lack of meaningful improvement in the labor market is likely to keep consumer demand tepid.  Those problems will probably even outweigh an encouraging drop in inflation.  In sum, today's data offers no reason to think that the Mexican consumer can boost the economy back to above-average growth rates in the near term.

Patrick Fearon, CFA
Vice President, Fund Management

                                          Mexico's Unemployment Rate
                                            Seasonally Adjusted, Percent
                                                      Source:  INEGI
Unemployment 1305

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