Mexico unemployment rate hits lowest in 11 years

Mexico City, Aug 15 (IANS) Mexico’s unemployment rate fell to its lowest level in 11 years in the second quarter, the National Institute of Statistics and Geography (INEGI) announced on Monday.

According to the report, the unemployment rate stands at 3.5 per cent of the economically active population (EAP), the lowest level since the second quarter of 2006.

INEGI President Julio Santaella Tweeted that the country had seen a rise of 765,000 jobs year-on-year, with 681,000 in the formal sector and 84,000 employed informally.

Between April and June, 236,000 people found jobs, leaving the total number of unemployed in Mexico at 1.9 million, Xinhua reported.

However, INEGI also reported that 29.5 million people still work informally, meaning they are not working as registered employees and pay no tax.

The Mexican economy is currently growing at a moderate pace, with GDP climbing by 2.3 percent in 2016 and at 1.8 per cent in the second quarter of 2017.

This continued growth will depend largely on how Mexico fares in the upcoming renegotiation of the North American Free Trade Agreement (NAFTA), a free trade agreement with the US and Canada.