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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.

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.

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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