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Brazil – Unemployment reaches 5.8%

24 May 2013

Unemployment in Brazil rose in April for the fourth month in a row, but joblessness remains near record lows. This is according to new figures by statistics agency IBGE, which showed that Brazil's jobless rate rose surprisingly to 5.8% from 5.7% in March.

Economists had expected unemployment to reach 5.6% in Latin America’s largest economy. But compared to a year ago, unemployment still declined as it stood at 6.0% in April 2012.

The country has been hit by an economic slowdown in the past two years which has also impacted the local labour market as the rate of job growth has slowed in recent months. In April, the economy added 196,913 payroll jobs, down from 216,974 in the prior year.

In April 2013, wages fell -0.2%from March to R$ 1.862.40, but grew +1.6% in comparison to April 2012. 

Overall, the data suggest that the labour market continued to soften amid sluggish economic growth. A recent survey of analysts and traders by Brazil’s central bank projected economic growth of +2.8% for this year. But the government expects the economy to increase by +3.5% in 2013, after growing by just +0.9% in 2012.

Earlier this week, President Dilma Rousseff said the Brazilian economy has created over four million jobs in the formal sector since 2011. Most jobs were created in the service sector, indicating increased consumption by Brazilians. 

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