The state of Oaxaca (no quote marks necessary, Oaxaca is one of the 31 states, plus the Federal District, of Mexico,) has had periodic troubles. Normally, the teachers have protested during summer school holidays in the center of town - the "zócalo."
This year, the protest began as usual, but the Governor sent folks to break it up and there was violence, The teachers, joined by other demonstrators including members of the PRD and the Oaxaca People's Popular Assembly, established themselves downtown, erected movable barricades and took over some of the media buildings, while calling for the removal of the Governor. The July statewide harvest celebration, Guelaguetza, was even cancelled this year.
On October 19, a protesting teacher was killed in a drive-by shooting. More recently, a group of demonstrators went to Mexico City to petition the government for the removal of Gov. Ruiz. The central government did not find a reason to proceed, though they agreed Gov. Ruiz has some fitness to govern problems. This past week, the demonstrators began returning to Oaxaca, with the teachers agreeing to return to teach Oaxaca's children as of Monday October 30.
In the meantime, armed men attacked the protesters, and there has been violence and deaths. One American journalist and two others were killed Friday October 27, by what many people have stated were police out of uniform.
The President, who is due to relinquish the reins of office at the beginning of December, has also sent "hundreds" of Federal police to Oaxaca to stop the violence; they should be deploying this weekend. On previous occasions, the Federal authorities have been heavy-handed and brought more violence of their own; it remains to be seen how this will play out.
For now, IMO it would be recommended to avoid Oaxaca city other than perhaps to transit the airport en route to non-city destinations. Though we have had a fairly recent post that stated it was calm and the poster had a good time, why take chances - in my years in Mexico I have seen these things go wrong suddenly with rapidly escalating violence, and there has already been significant violence.
It all makes me very sad - Oaxaca is one of my favorite places, and I have spent many pleasant days there.
A few BBC articles:
Demand for end to Mexico protest
Journalist dies in Mexico protest
Mexico governor under Senate fire
Protest teacher killed in Oaxaca