Unemployment remains stable at 8.5% until April, says IBGE – 05/31/2023 – Market

The unemployment rate in Brazil was stable at 8.5% in the quarter to April, after reaching 8.4% in the immediately previous three months, informed this Wednesday (31) the IBGE (Brazilian Institute of Geography and Statistics).

In the median, analysts consulted by the Bloomberg agency projected an indicator of 8.8% for the quarter until April.

With the new result, the number of unemployed was 9.1 million in the country, said the IBGE. The contingent was 9 million in the immediately preceding three months.

The data are part of the Continuous PNAD (Continuous National Household Sample Survey). In the quarter up to March, which is part of another Pnad series, the unemployment rate was already at 8.8%.

The IBGE survey covers the formal and informal labor market. That is, it ranges from jobs with a formal contract and CNPJ to the popular odd jobs.

Historically, the beginning of the year registers an increase in unemployment. According to economists, the search for work is usually driven by factors such as the end of temporary contracts at the end of the year.

The unemployed population, according to official statistics, is made up of people aged 14 or over who are unemployed and are looking for jobs. Those who are not looking for opportunities, even without having a job, do not enter this number.

After the damage caused by the pandemic, the generation of job vacancies benefited from factors such as vaccination against Covid-19. Immunization allowed the return of people’s circulation and the reopening of businesses.

The labor market recovery, however, tends to lose speed in 2023, according to analysts. The projection is associated with the scenario of deceleration of economic activity amid the context of high interest rates.