Mexico's December Unemployment Holds Steady on Year at 4.5%

    By Amy Guthrie

    MEXICO CITY--Mexico's unemployment rate held steady in December from the year-earlier month, while decreasing from November in seasonally adjusted terms, national statistics institute Inegi said Monday.

    Unemployment among the country's 51 million-strong workforce was 4.5% in December, while in seasonally adjusted terms it was 5% versus 5.1% in November, Inegi reported. Urban unemployment, based on the country's 32 largest cities, rose to 5.3% from 4.9% in December 2011, but was down from November 2012.

    The relatively low unemployment levels in Mexico are due in part to a large informal economy, and to the lack of unemployment benefits.

    Inegi said that in December, 59.2% of the people that had work labored in informal conditions, such as in home-based activities, unregistered businesses, subsistence agriculture, or even in formal workplaces without health or other benefits. That was down slightly from 59.9% a year ago.

    Changes recently made in the federal labor law seek to increase the number of people employed in formal conditions. The reform makes it easier for businesses to hire and fire workers, and also aims to regulate outsourcing of labor, while allowing for formal part-time work and payment by the hour.

    The changes could benefit workers who are employed in informal conditions at formal workplaces, but may not have any effect on agricultural workers or those paid to work in family-based businesses.

    Write to Amy Guthrie at