Brazil’s unemployment rate has fallen to 6.4% for the July-September period, surprising analysts and marking the second-lowest level on record, according to figures released Thursday by the national statistics agency, IBGE.
This decline from the previous quarter’s 6.9% and last year’s 7.7% places the country’s job market in a favourable position amid broader economic challenges.
Economists polled by Reuters had anticipated a slight uptick to 6.5%, but the actual data showcases the resilience of Brazil’s labour market.
IBGE reported a significant drop in the number of jobless people, down by 7.2% from the previous quarter to 7 million.
Meanwhile, the number of employed Brazilians reached 103 million, up 1.2% from the last quarter—marking an all-time high in the dataset.
Average wages in Brazil rose modestly, with real wages standing at 3,227 reais ($559.29) in the period, indicating an increase in purchasing power amid the country’s strong employment gains.
For the past year, Brazil’s jobless rate has remained at historically low levels. For instance in 2023, 14–17 years 30.2%, 18–24 years 16%, 25–39 years: 7%, 40–59 years 5.1%.
While the government has highlighted this as a sign of economic strength, concerns persist that a tight labour market may lead to inflationary pressures.
Reflecting these concerns, the central bank raised its benchmark interest rate last month by 25 basis points to 10.75%, the first increase in over two years, in response to robust economic activity and labour market strain.
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