Mexico's unemployment rate reaches 2.9% in July, Inegi reports

Mexico's National Institute of Statistics and Geography (Inegi) reported that the country's unemployment rate reached 2.9% of the Economically Active Population (PEA) in July. This figure translates to approximately 1.8 million unemployed individuals. The data indicates a slight increase from the 2.8% recorded in July of the previous year, but it matches the rate observed in June of the current year.

Compared to July of the previous year, the number of unemployed people in Mexico saw an increase of 79,412. The PEA, comprising individuals aged 15 and over, reached 62.6 million in July, representing a participation rate of 59.2%. This indicates a marginal increase of 34,000 active individuals compared to the same month last year.

Conversely, the number of employed individuals decreased slightly. In July, 60.8 million people were employed, a reduction of 45,000 compared to July of the previous year. Furthermore, the number of underemployed individuals, those who needed and were available for more work, stood at 4 million, or 6.7% of the employed population. This percentage is lower than the 7.3% recorded in July of the previous year.

Informal labor remains a significant aspect of Mexico's employment landscape, with 34.1 million workers engaged in informal jobs in July, resulting in an informality rate of 56.2%. The distribution of the employed population across sectors shows services accounting for the largest share at 43.8%, followed by commerce (19.6%), manufacturing (15.9%), agricultural activities (10.6%), and construction (8.7%). These labor figures emerge against a backdrop of Mexico's economy growing 1.4% year-on-year in the second quarter of the current year, amidst ongoing trade uncertainties with the United States.