Unemployment in Mexico drops to 4% in May

Mexico City, Jun 24 (EFE) .- The Mexican unemployment rate stood at 4% of the economically active population (EAP) in May 2021 after 12 million people rejoined the labor force in the last year, revealed this Thursday the National Institute of Statistics and Geography (Inegi).

The unemployment rate is lower than the 4.7% reported last April and the 4.2% registered in May 2020, when Mexico was facing the health emergency due to covid-19 that suspended non-essential activities in the economy.

“The EAP amounted to 57.2 million people, 12 million more than in May 2020, a month of confinement due to the pandemic; the employed population was 54.9 million, 11.6 million more than the same month of 2020”, Julio A. Santaella, president of Inegi, explained.

Inegi considers employees over 15 years of age who work at least 6 hours a week and in any position.

The underemployed population, which declared that it had the need and availability to have more hours of work than those allowed by its current occupation, represented 12.9% of the total employed population compared to 29.9% a year ago.

Although the unemployment rate fell, in absolute terms the unemployed population grew by 388,000 people, to a total of 2.3 million.

“The labor participation rate was estimated at 58.3% (seasonally adjusted) at the national level and 58.6% in the urban aggregate, rates that compare with 59% and 58.6% in April 2021, still below from the levels prior to the pandemic “, highlighted Santaella.

By sex, the participation rate of men was 75.4% and that of women 43.9%, which represents an annual increase of 14.3 percentage points for men and only 8.6 for women.

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Informal employment in May 2021 amounted to 30.5 million and placed the rate at 55.5%.

62.4% of the employed population was concentrated in the commerce and services sector, 25.1% in the industrial sector, 12% in primary activities and 0.6% did not specify activity.

Of the total employed, 68.2% operate as a subordinate and paid worker occupying a position or job, 22.7% work independently or on their own without hiring employees and 5% are employers or employers.

The unemployment rate closed at 4.4% in the first quarter of 2021, an increase of 1 percentage point compared to 3.4% in the same period of 2020.

Mexico had a historical contraction of 8.2% in 2020 and this year it expects an official rebound of more than 6%.

(c) EFE Agency

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