Mexico’s March unemployment rate skewed by restrictions on coronavirus
Mexico’s unemployment rate fell in March, official data showed on Monday. However, experts said the true figure was possibly higher than reported due to data collection constraints in the midst of tougher steps to prevent coronavirus spread. Mexico’s March unemployment rate skewed by restrictions on coronavirus,
In seasonally adjusted terms, Mexico’s unemployment rate was 3.3 per cent in March, down from 3.7 per cent in February. The unadjusted headline rate was 2.9 per cent in March.
Mexico’s national statistics agency INEGI said it suspended its face-to-face interviews until further notice due to coronavirus restrictions.
Goldman Sachs analyst Alberto Ramos said the lower-than-anticipated number indicated a “severe data collection problem,” possibly triggered by less in-person interviews.
“We expect the labor market in the coming months to deteriorate dramatically as we foresee a rapid contraction of real GDP by 2020,” Ramos said in a survey.
Jonathan Heath, said on Twitter the study was not consistent with past data as a result of the methodology update.
“Another target of the health / economic crisis is job measures, more important than ever to understand what is going on,” he said.
INEGI said it would soon make improvements to some of its data collection services, including unemployment programmes.
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