Business · Economy · 2 hrs ago

Mexico’s Labour Force Participation Fell to a Seven-Month Low

Mexico’s Labour Force Participation Fell to a Seven-Month Low

Mexico’s labour force participation rate fell to 58.5% in September, down 0.8 percentage points from August and the lowest level in seven months.

The rate measures the share of people of working age who are working or looking for a job.

The number of employed people fell by 717,972, while the number counted as unemployed also declined, by 125,029.

The unemployment rate fell to 2.8%, but a lower unemployment rate does not necessarily mean more people have jobs: people who stop looking for work are no longer counted as unemployed.

Experts say discouragement about finding work, weak formal job creation and barriers to women’s employment may help explain the fall.

Informal work, pay, job stability and caregiving responsibilities can also affect whether people enter the labour market.

The September rate was below December’s 59.1%, and the figures point to slower momentum in bringing people into work, though no specific next step was reported.

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What people are saying

Janneth QuirozDirector of Economic, Foreign Exchange and Stock Market Analysis at Monex
The Mexican labour market faces difficulties in steadily expanding the participation of the working-age population.
via El Economista MX
María SolisMexico analyst at México, ¿Cómo Vamos?
In reality, low unemployment does not mean there is more employment; it can mean that people are not looking for work.
via El Economista MX
Gabriela SillerDirector of Economic and Financial Analysis at Banco Base
The decline in labour participation may be because people are discouraged, feel they will not find work and do not look for a job.
via El Economista MX