In the formal economy, more people are working. In the formal economy, more people are working.

Unemployment rate drops to 11-year low

July jobless rate was 3.2%, the lowest since May 2006

Mexico’s unemployment rate is at its lowest in 11 years, according to data released by the national statistics institute, Inegi.

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In July 3.2% of the economically active population was jobless, the lowest level since May 2006 when the figure was 3.1%.

Unemployment was down 0.3% compared to June and 0.6% compared to July 2016.

There were just over 1.7 million people unemployed.

However, almost 30 million people or 57.1% of all workers in the country are considered vulnerable because they work in the informal economy.

Analysts from Banorte-Ixe said that employment figures will continue to improve at a similar rate in the second half of the year due to a lower probability of drastic changes to policies that affect trade between Mexico and the United States.

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But they added that a reduction in government spending will continue to harm employment.

The underemployment rate has also improved over the last year. It was 6.4% in July, a 1.5% reduction on July 2016 figures.

Unemployment figures were the same for both men and women while the states with the lowest rates were Guerrero (1.7%), and Oaxaca and Morelos (1.8%).

The highest jobless rates were recorded in Tabasco (7.3%), Mexico City (4.9%), Coahuila (4.8%) and Baja California (4.6%).

The unemployment rate for the country’s 32 largest urban areas was 4.1%, slightly above the national rate but it improved by 0.5% on July 2016 figures.

The services sector is the nation’s biggest employer with 42.2% of the work force followed by 17.9% in commerce and trade, 17.2% in agriculture and 8.2% in construction.

Inegi said 59.2% of the population over 15 years old is economically active, representing 53.5 million people, while 17.7% of the unemployed haven’t completed middle school education meaning that over 80% of those reported jobless have achieved, at least, a post-elementary school education level.

Source: Milenio (sp)

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  • jwd

    What a load of BS! Apparently they consider a person out selling gum or washing windshields for 20 pesos per day to be gainfully employed! In Mexico’s defense, I have no idea of how you could actually determine an accurate unemployment rate. There used to be a rate referred to as “under employed”. That number in Mexico would be very high!

  • DeplorableVI

    We need to bring home all and any of them American jobs. No country can export good tax paying jobs and import massive loads of welfare dependent peasants and illegal aliens.

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