MexECON Blog

May Unemployment Rises to 5.0 Percent

Mexico's May unemployment rate rebounded to a seasonally-adjusted 5.0%, after revised readings of 4.9% in April and 5.3% in March.  Joblessness is now running slightly higher than its six-month moving average of 4.9%.  The report was released today by INEGI, the official statistics agency.

Comment:  The rebound in Mexico's unemployment rate during May illustrates how hiring remains relatively weak.  Joblessness has been trending down for several years now, in conjunction with the country's recovery from its severe 2008-2009 recession, but the improvement has been excruciatingly slow, and unemployment remains well above its level before the recession.  In fact, the labor market seems to have stalled over the last the last year and a half, and it may even be weakening again.  The recent stall in the labor market is consistent with the slowdown in Mexican economic growth.  Because it has helped hold down consumer spending, the tepid labor market is also providing negative feedback into the slow economy.

Patrick Fearon, CFA
Vice President, Fund Management

                                            Mexico's Unemployment Rate
                                             Seasonally Adjusted, Percent
                                                       Source:  INEGI
Unemployment 1405

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