Friday, June 2, 2023

The unemployment rate in Mexico drops to 2.8% at the end of 2022

The Mexican unemployment rate fell to 2.8% of the economically active population (PEA) in December 2022, a drop compared to the rate of 3.5% a year earlier, the National Institute of Statistics and Geography (Inegi) reported this Thursday.

“The unemployed population was 1.6 million people and the unemployment rate (TD) was 2.8% of the EAP. Compared to the last month of 2021, the unemployed population decreased by 427,000 people, ”Inegi indicated in its report.

The EAP at the end of the year was 59.6 million people aged 15 and over, which represented a participation rate of 59.7% and an active population 580,000 people higher than that of December 2021.

Of the PEA, 57.9 million people were employed during December, 1 million more than in the same month of the previous year.

Underemployed people, that is, those who declared having the need and availability to work more hours, were 4.2 million, 7.3% of the employed population, which implies a reduction of 1.5 million people compared to December 2021.

Compared to November, the unemployment rate “did not change,” added the Inegi.

informality falls

The decrease in the unemployment rate was accompanied by a drop in informality.

Workers in the informal sector in December totaled 31.8 million, which lowered the informality rate to 54.9%, an annual reduction of 1.6 percentage points.

The employed population by activity sector was distributed with 25.3 million (43.7%) of the total in services, 11 million in commerce (19%), 9.5 million in manufacturing (16.5%), 6.7 million in agricultural activities (11.5%) and 4.6 million under construction (7.9%).

While in “other economic activities”, which include mining, electricity, water and gas supply, 409,000 people (0.7%) were employed, and the remainder did not specify any activity.

By gender, the female EAP in December was almost 24.25 million and the male 35.34 million, with an economic participation rate of 45.8% in women of working age and 75.5% in men.

Economic recovery

The employment figures reflect the behavior of the Mexican economy, whose gross domestic product (GDP) grew 0.9% quarterly from July to September and 4.3% year-on-year, thus accumulating growth of 2.9% in the first three quarters of 2022.

This is the second consecutive annual drop in the unemployment rate in Mexico, which closed 2021 at 3.5% and ended 2020 at 4.1% due to the impact of the covid-19 pandemic.

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