Mexico’s jobless rate likely to remain above pre-crisis level in 2016

Mexico's December jobless rate was recorded at 4.4% in seasonally adjusted terms; higher than forecast and from November's recording of 4.2%. According to a report, the decrease in employment was possibly countered by a drop in the participation rate of 158bp. The nation's unemployment, in annual terms increased to 3.96% for December 2015 from 3.76%.

Mexico's labor market continues to be unpressured as the jobless rate continues to be above the pre-crisis levels. The unemployment rate is expected to remain above that level for the whole of 2016 as economic activity is likely to remain moderate.

"In our view, the persistence of slack in the labor market will be very relevant to keeping inflation pressures under control amid the recent depreciation of the MXN, as wages will likely increase very close to 4% throughout the year", says Barclays.