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Mexico’s formal sector adds few jobs, latest report says

August 14, 2019

Formal sector jobs in Mexico posted little growth in June, according to a report on the Mexican economy released this week by the Federal Reserve Bank of Dallas.

Employment in the formal sector grew at an annualized rate of just 0.2% in June, below the 10-year average of 3.6%.

“In contrast, total employment, representing 54 million workers and including informal sector jobs, grew 2.4% in first quarter 2019, slightly above its 10-year average of 2.0%,” according to the report.

Labor market tightness could be playing a role in restraining formal-sector employment gains, it said.

The unemployment rate in May was 3.5%, unchanged from April. The report noted that Mexico’s jobless rate is slightly higher than the 2018 average of 3.3% but still very low.

Overall, Mexico’s gross domestic product expanded at an annualized rate of 0.4% in the second quarter, the third consecutive quarter of near-zero growth, according to the report. GDP had contracted 0.7% in the first quarter.

Mexico’s GDP forecast for 2019 was reduced to 1.1% in June from 1.3% in May.


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