Hot Job Markets Underpin Strength of Latin America’s Biggest Economies
- Resilience in local labor markets puzzles central bankers
- Region’s top two economies seeing strong demand for services
Tourists dine at a restaurant in Cabo San Lucas, Baja California Sur state, Mexico, on June 24. The services sector remains strong in Mexico, creating jobs even as the central bank keeps borrowing costs at 11.25%, a record high.
Photographer: Mariceu Erthal/BloombergBrazil’s and Mexico’s labor markets are extending their hot streaks into the third quarter in an unexpected performance that has underpinned the strength of Latin America’s two largest economies.
Official data released Friday showed Brazil’s jobless rate fell to 7.8% last month while the number of out-of-work people declined to 8.4 million, both figures at the lowest levels since 2015. The numbers come a day after a report showed Mexico’s unemployment sliding under 3% in the same period as job growth is expected to stay strong in coming months.