Mexico's unemployment rate had a soft improvement after reaching 4.31% sa in July from 4.36% sa previously, under a stable participation rate at 59% sa, while the underemployment rate fell to 8.16% sa from 8.6% sa and the informal labor rate decreased at the margin to 57.7% sa. In non-seasonally adjusted terms the unemployment rate printed 4.72%.
The report was in line with the forecast and supports the view that the labor market will keep improving, the services and manufacturing sectors could lead the upturn. The unemployment rate should reach close 4.0% by the end of the year.
"With this very slight improvement in the labor market, low inflation, moderate economic activity and along with the probable delay of the Fed, Banxico should have more reasons to not start hiking rates in the next meeting, and wait until December as we have forecasted before", says Barclays.
