MexECON Blog

September Unemployment Unchanged at 4.8 Percent

Mexico's September unemployment rate came in at a seasonally-adjusted 4.8%, equal to the revised figure for August and well below the 5.2% reading in July.  The rate of joblessness in September was slightly below its six-month moving average of 4.9%.

The report was released today by INEGI, the official statistics agency.

Comment:  After rising throughout early 2014, and then posting a worrisome spike in July, it now appears that Mexican unemployment is resuming its very gradual, uneven downtrend.  That should be no surprise, given the recent rebound in Mexican exports, manufacturing, and construction.  Nevertheless, those factors still are not strong enough to spark a large, dramatic improvement in the labor market.  Consumers probably still feel like the demand for labor is relatively weak, even as inflation remains uncomfortably high.  Until consumers feel better about their prospects, consumption spending will likely remain softer than it otherwise would be, which will limit how much the Mexican economy can accelerate in the near term.

Patrick Fearon, CFA
Vice President, Fund Management

                                           Mexico's Unemployment Rate
                                            Seasonally Adjusted, Percent
                                                       Source:  INEGI
Unemployment 1409

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