Low unemployment rates have not just been good for Americans, but for Mexicans as well, on both sides of the border. Mexicans who immigrated to the United States, whether legally or not, have always been generous when it comes to sending money (remittances) to family members back home. The amount is significant, significant enough that with the price of oil down as low as it is, remittances now provide more revenues than oil, for the first time as a source of foreign income, Mexico’s central bank reports.
Low unemployment means for many of the 11 million Mexicans living in the U.S. that job opportunities are better so there is more money to share with those not as fortunate south of the border. 2015 remittances were up 4.75% to $24,8 billion from 2014 - never before surpassing petroleum since the Bank of Mexico began tracking them in 1995.
Previous to '95 oil exports represented nearly 80% of the total dollar income for the Mexican economy, whereas today it is less than 20%. Remittances, and a more diversified manufacturing base–which is Mexico’s No. 1 source of foreign income–have allowed the country to substantially diversify its economy. Add to this Mexico’s surging tax revenue growth from a stronger position on collections and its ability to do so, shows that the country continues make strong gains regarding economic diversification and growth.
by John Youden - October 18, 2021