Mexico’s jobless rate likely to have increased in July

Jobless rate in Mexico is expected to have risen in July; however, on a seasonally adjusted basis, it is likely to have remained flat. Last year, the country had registered a higher unemployment rate as compared with the rate during the end of 2014.

However, with the volatility of labor market data, the average jobless rate for 2015, at 4.35, was below 2014’s level of 4.83 percent, which is in line with the Mexican economy expanding at close to the trend rate. In June, the seasonally adjusted jobless series declined to 3.94 percent.

With the present rate of manufacturing growth and hiring, jobless rate in the country is expected to have increased in July to 4.29 percent. However, the seasonally adjusted pace is expected to have remained flat at 3.91 percent, noted Societe Generale in a research report.

Despite the slowdown in growth recently, the labor market’s wide trend was that of a small improvement. But the outlook of growth has slowed further in the last few months, and this might hamper the likelihood of persistent rebound in the labor market in the medium term, added Societe Generale.