Mexico Facing Slow Job Recovery

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Mexico is seeing a slow recovery in employment levels after the gradual reopening of businesses that were closed due to the novel coronavirus (covid-19) pandemic, the National Institute of Statistics and Geography (Inegi) reported on Wednesday, Oct. 22.

Unemployment rates among Mexico’s Economically Active Population (EAP) fell to 5.1 percent in September, from the 5.2 percent that was recorded the previous month, the agency said in a report.

Additionally, another 245,000 people joined the informal employment sector in September, bringing the national total to 28.1 million.

“In general terms, the results of the ENOE (National Survey of Occupation and Employment) in September 2020 confirm the slow recovery of occupation and employment observed in August,” the agency said.

In a separate report, the Monex Financial Group agreed that the September figures confirm slow but steady job recovery.

“If these job creation rates remain constant, it would take several months for the unemployment rate to return to what was observed prior to the covid-19 crisis, and it is likely to remain above 4.0 percent during 2021,” the Monex report stated.

Due to the pandemic, Mexico, the second-largest economy in Latin America after Brazil, is facing a historic economic decline of 9 percent for 2020, according to the International Monetary Fund (IMF).

…Oct.  23, 2020

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