It looks like the unemployment rate in Mexico has fallen to just under 5%. Back in July when the numbers started to show the number of Mexicans returning to Mexico was hitting agriculture and construction, the U.S. news media began to take notice. Now the numbers look like they've dipped below 5% - something that could have consequences for both the U.S. and Mexico. Not only might the U.S. begin to see an even sharper rise in food prices due to weather patterns, but that problem might be made worse by labor costs as the cheap labor of undocumented pickers is hard to replace.
For Mexico, it might mean a slow-down in productivity if there aren't enough workers to contribute. It might also mean a hike in prices: Businesses like to see unemployment at around 5% to help keep labor costs down. Mexico has already wrestled with higher food prices over the last few years, can it handle another hike? On the up side (well, maybe), this from the Mexican consul in sacramento:
"It's now easier to buy homes on credit, find a job and access higher education in Mexico," Sacramento's Mexican consul general, Carlos González Gutiérrez, said Wednesday. "We have become a middle-class country." (see more here)
On a down note, sales of port-a-border will fall:
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