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NewsFlash: March 9, 2007

Mexico’s Economic Turmoil and Immigration to U.S.

As economic conditions have led many Mexican workers to U.S. jobs that often support families back home, an estimated one in six Mexicans now lives in the United States. As President Bush conducts his Latin American tour and visits Mexico Monday, a new report by a Mexico City researcher and released by the Global Policy Network shows how the past six years in Mexico have brought increased instability to workers and labor markets that is contributing to a sharp rise in immigration to the United States.

The study, prepared by economist Carlos Salas of the Mexican Institute of Labor Studies, is the first detailed analysis of the economic performance of the administration of Vicente Fox, whose policies are continued by President Felipe Calderon. The study shows how plans to improve the living conditions of Mexican workers and reduce migration to the United States have failed, as the growth of GDP per capita fell sharply from 21.4% between 1994 and 2000 to just 7.9% during the Fox administration, for example. The report also shows how in the wake of decreased Mexican exports to the United States because of more U.S. importing from China, Mexico is becoming increasingly dependent on remittances from Mexicans living in the United States. 

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