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Mexico & Nafta - July 2009 (ISSN 1741-444X)

What US unemployment means for Mexico

The jump in the US unemployment rate in June to 9.5% cannot be anything but bad news for the Mexican economy and the Calderón government. Rising unemployment in the US shows that the economy there is still weak, so demand for Mexican goods and services will remain depressed. More importantly, it also shows that demand for labour in the US is still falling. This will mean two things. First, fewer Mexicans will cross into the US in search of work. Second, anti-immigrant policies in the US are likely to meet with wider support.

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