Mexico’s labor market unlikely to rebound in 2016

In 2015, Mexico registered a higher jobless rate as compared to 2014. The average jobless rate for 2015 was 4.35%, which is lower than 2014’s 4.83%, in line with slight growth acceleration. However, the possibility of a rebound in labor market in 2016 has been hurt due to the projections of slower economic growth, according to Societe Generale.

Currently, Mexico’s labor market is stagnant and the jobless rate is hovering near 4.2%-4.3% as compared with 2007-08’s peak rate of about 3.4%-3.7%. Further rebound in the labor market seems very difficult even if the market is unlikely to deteriorate from present levels, added Societe Generale.

“We expect the seasonally adjusted unemployment rate to rise marginally to 4.30% in February (from 4.26% in January) even while the non-adjusted rate falls to 4.13% from 4.24%”, says Societe Generale.