MexECON Blog

June Unemployment Steady at 4.4 Percent

Mexico's June unemployment rate came in at a seasonally-adjusted 4.4%, unchanged from the revised readings in May and April.  Joblessness in Mexico remains far below the most recent peak of 5.0% last summer, but it seems to have reached a plateau in recent months.  For the last three months, the rate of unemployment has been stuck right at its six-month moving average of 4.4%.

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

Comment:  The Mexican labor market is much stronger than it was just one year ago, but it is now clear that the market is no longer improving.  That probably reflects Mexico's softer exports, manufacturing, and construction earlier this year.  Nevertheless, lower unemployment versus last year continues to buoy consumer confidence and consumption spending.  I suspect there is plenty of room for further improvements in the consumer sector in the coming months, and that should help keep the Mexican economy growing at least moderately.

Patrick Fearon, CFA
Portfolio Manager

Unemployment 1506

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