Unemployment in Mexico Stays at 2.2% in March, According to Inegi

According to the National Occupation and Employment Survey ( ENOE ), the unemployment rate in Mexico remained at 2.2% in March, marking a slight decrease from 2.3% in the same month last year. However, the labor force participation rate — which measures the percentage of people who are either working or actively seeking employment — dropped from 60.2% to 59.3% over the past year.

Slight Increase in Informal Employment and Critical Labor Conditions

The Economically Active Population (PEA) reached 61.1 million people, indicating a decrease of 128,000 individuals compared to the previous year, according to the Inegi report published on Monday. The decline was more pronounced among men, whose economic participation fell by 0.9 percentage points, compared to a 0.6 point drop among women. As for informal employment, there was a slight uptick, rising to 54.4%, up from 54.3% in March last year. The underemployment rate — which indicates those working fewer hours than they would like — increased to 6.6%, a subtle rise from 6.5% a year prior. On the other hand, the critical conditions of occupation rate improved, decreasing from 38.1% to 34.1%, reflecting a slight enhancement in salary conditions and work hours.

These figures regarding unemployment and informality reflect the changing dynamics of the labor market in Mexico. While the unemployment rate remains low, the decline in labor force participation and the slight increase in informality are concerning signs that could impact long-term growth. It is crucial for effective policies to be implemented that promote not only the creation of formal jobs but also the improvement of working conditions to ensure sustainable development in the economy.