Quotes from Barclays Capital:- Mexico's unemployment rate in Nov was 4.53% a tad higher than the one observed in Nov 2013 (4.48%). In seasonally adjusted terms, the unemployment rate was 4.71%, a bit lower than that of the previous month (4.73%). The improvement is also complemented by a small increase in the participation rate (59.4% vs. 59.0 in sa terms). The labor informality rate has also declined, to 57.3% in November from 57.4% in October, maintaining the lowest levels since 2006. This could be a positive development from the labor reform.- We highlight that the participation rate remains at levels lower than those in 2013, which could be a reflection of the moderate pace of economic growth this year. However, this report suggests a very timid recovery in the labor market and the slack could persist in the coming quarters. A slow recovery implies that no wage pressures should be in sight, providing time for Banxico to start a hiking cycle in 2015 later than sooner, in our view.
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