As we learned in economics this week, many countries including Mexico undergo high unemployment rates. As I write this blog, I will be talking about the different types of unemployment and how they effect the country's economy. According to http://www.universia.net/, the unemployment rate in Mexico has shot up from .72% to about 3.8% in the past five years. As we learned in class, the term underemployed means people whom would like to find a full time job but can only find part time. As this term coordinates with the fact that a recent graduate in a Mexico city has any chance of finding a full-time job that meets the standards of the degree they have received.
There are four types of unemployment we discussed in our class this week, they include seasonal, frictional, structural and cyclical. The most popular type of unemployment in Mexico is cyclical. Many employed Mexicans are either fired because of a cut in salaries due to the shortage of money in a company. The lower salaries being given to Mexican workers is how large companies keep producing. In the end they can offer their customers competitive prices, according to Juan Castingts professor at the Autonomous Metropolitan University in Mexico City. As the unemployment rate in Mexico is fairly high, it is considered to be a stable country today.
Your post was well written! I came into this class not knowing much about macroeconomics so of course, I do not know much about economics in other countries but after reading this, I learned a little bit more about Mexico. I find it interesting how you actually looked up what kind of unemployment Mexico has, which is cyclical. That is unfortunate how the people lose their jobs because of the cut in salaries but on a positive note, it is interesting to read that Mexico is considered to be a stable country.Good luck on your next post!
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