Mexico's unemployment rate in May was 4.37% sa, similar to that observed in April (4.35%), as the participation rate remained fairly stable, at 59.51% from 59.55% previously. Underemployment fell to 7.6% from 8.4%, suggesting better labor conditions.
This apparent stagnation of the labor market is consistent with the deceleration in formal employment observed this month, as it increased only 0.1% m/m sa after posting strong increments in the previous 12 months.
"The report suggests that the economy is probably accelerating in a softer manner during Q2, as labor market conditions are improving but at a slower pace than we were expecting. Down the road, if the unemployment rate gets closer to 4%, it would signal that the economy is finally gaining traction." says Barclays
