Mexican labour market performance and emigration

Abstract

During the last three decades, the Mexican economy has not generated enough jobs for the expanding labour force. Unemployment rate in Mexico is low, but almost one third of the labour force works in the informal sector. Migration flows from Mexico to the US have been significant in the last decade. Even though the number of Mexicans in the US has remained stable, Mexican immigration to the US dropped from 2006 to 2009. Emigration is a key employment channel for the enlarged working-age Mexican population. A reduced migratory flow may pose a major challenge for the Mexican labour market.