Mexico’s Lowest Unemployment Rate in Two Decades: A Closer Look at Critical Employment Conditions and Discrepancies in Data Reporting

The unemployment rate in Mexico has fallen to its lowest level since records began, with a rate of 2.5 percent at the end of the first quarter of 2024. This represents positive trends in the labor market, as it is the lowest proportion in two decades. However, critical employment conditions have escalated to 34.3 percent, which is the highest level published by the National Institute of Statistics and Geography (Inegi).

According to Inegi’s data, there has been a reduction from the previous year, and it is the lowest proportion since 2005 when the National Employment Survey began. Gender gaps are also reflected in unemployment data, with more men than women actively seeking work.

However, there are discrepancies in Inegi’s statements regarding critical employment conditions data, raising questions about its accuracy. Specifically, Inegi reported that 54.4 percent of the economically active population works informally, indicating that a large portion of the workforce is vulnerable to unstable work conditions. Moreover, overall unemployment increased despite a decrease in labor force size due to specific data for Guerrero being affected by a hurricane.

In conclusion, while Mexico has seen a decrease in unemployment rates, there are concerns about critical employment conditions and discrepancies in data reporting that could impact sustainable and inclusive employment opportunities for all. It is crucial to address gender gaps and informal work while ensuring accurate reporting to ensure a healthy labor market for all Mexicans.