MexECON Blog

October Unemployment Falls to 4.7 Percent

Mexico's October unemployment rate fell to a seasonally-adjusted 4.7%, after revised readings of 4.8% in September, 4.9% in August, and 5.1% in July.  The rate in October was slightly below its six-month moving average of 4.8%.  Joblessness in Mexico is now at its lowest level in almost a year.

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

Comment:  Mexican unemployment has resumed its slow, uneven downtrend, thanks to modest growth in the country's exports, manufacturing, and construction.  Those factors are still not strong enough to spark a large, dramatic improvement in the labor market, but hiring has improved enough that consumers have been able to adjust to the January sales tax increase and recent high inflation.  Consumer confidence and spending have been rising gradually.  The outlook therefore calls for the Mexican economy to keep growing in the near term, but at a modest pace.

Patrick Fearon, CFA
Vice President, Fund Management

Unemployment 1410

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