Unemployment in Brazil is better than forecast
2022.11.30 08:36
Unemployment in Brazil is better than forecast
Budrigannews.com – The statistics agency IBGE said on Wednesday that Brazil’s jobless rate fell to 8.3% in the three months through October. This was lower than what the market had expected, but the key indicator is still at or near seven-year lows.
In a poll conducted by Reuters, the median forecast called for an unemployment rate of 8.5%, but it actually reached 8.7% in the rolling quarter that ended in September.
According to IBGE, the most recent data showed the lowest rate of unemployment in Latin America’s largest economy since July 2015, as well as the lowest rate for the eight-year period between August and October.
It also stated that the number of employed individuals reached 99.7 million, a new record for the series that began in 2012.
According to a report, research manager Adriana Beringuy stated, “This trend has been underway since the second half of 2021, and as we approach the final months of the year – a period in which there is historically an increase in job creation – it continues.”
Economy Minister Paulo Guedes stated that he expected the unemployment rate to fall to 8% by the end of the year. The government of Brazil has been betting on an improved labor market to drive economic growth in 2022.
According to Andres Abadia, chief Latin America economist for Pantheon Macroeconomics, the most recent data indicate a positive start to the fourth quarter due to a relatively healthy economy and the delayed impact of fiscal support.
However, he emphasized that recent surveys suggested a slowing of the momentum.
Abadia stated, “A modest increase in the unemployment rate during the first half of next year points to tight financial conditions, increased policy uncertainty, and deteriorating external fundamentals.”
