Unemployment in Brazil is twice the world average, in a ranking of more than 40 countries

Unemployment in Brazil, at 13.2% in the quarter ended in August, is more than double the international average, at 6.5%, according to a ranking made by the risk rating agency Austin Rating.

The numbers compare countries that released August unemployment data. According to the ranking, the Brazilian unemployment rate is the fourth highest in a list of 43 economies plus the average in the euro zone.

In the performance in August, Brazil was only in a better position than Costa Rica (15.2%), Spain (14.6%) and Greece (13.8%).

Among the countries analyzed, the lowest unemployment was registered in Singapore (2.6%), Switzerland (2.7%) and the Czech Republic (2.8%). On average for eurozone countries, unemployment was 7.5% in August.

“It will still take time for the labor market in Brazil to recover. The last time we had a single-digit unemployment rate was in 2015, we always had an international or domestic factor delaying the recovery”, says Alexandre Agostini, economist- Austin’s boss.

He adds that the political environment has been superimposed on the economic one, which leads us to a situation of structural unemployment.

“We have a high level of underemployment and the tax structure to keep a worker ends up making employment the last variable to recover after a crisis.”

In general, he says the countries with the highest unemployment rates are domestic factors. “Countries where problems persist after international crises and moments of recovery have domestic factors working against them.”

In the case of Costa Rica, leader of the ranking, political turmoil weighs heavily, recalls Agostini. “Greece was in recession for a decade and Spain has been growing little. Brazil is in the same line, it is affected by external problems, such as the pandemic, but there are also domestic factors affecting job recovery.”

He highlights that the projections released in October by the IMF (International Monetary Fund) indicate that Brazil should close 2021 with unemployment at 13.8%, which would place the job market in Brazil among the 15 worst in the world.

The unemployment data for Brazil used in the survey comes from the most recent PNAD (Continuous National Household Sample Survey), by IBGE. For her, the unemployment rate was 13.2% in the quarter ended in August, which represents 13.7 million workers.

Part of this portrait can be seen in the queue that formed since dawn this Monday (22) at the door of the UNG (Universidade Guarulhos), in Greater São Paulo, on the Bonsucesso campus, for a fair where 1,000 jobs were offered, among fixed, temporary and internship vacancies, especially in the industrial, commercial and service areas.

“I handed in my documents for a job as a production assistant at a company in Guarulhos. I arrived around 2 pm, I could have a little more organization, but the balance is positive and expectations are high”, says Lucas da Silva, resident Of region.

He, who finally managed to arrange an interview for a job opening, is expected to be hired later this month.

The event was supported by Sebrae, Asec (Association of Entrepreneurs of Cumbica), ADRH (Association of Human Resources Managers of Guarulhos), Guarulhos Entrepreneur, and CME (Conselho da Mulher Empreendedora), in addition to human resources companies and language schools.

First in line, having arrived at the fair around 4 am, industrial cleaning assistant Penha Lousada da Silva, 54, managed to arrange an interview for next Friday.

Labor market specialists have shown concern about the long period in which Brazil has registered high unemployment.

Recent projections indicate that, at the current pace, the country would only return to the unemployment rate of before the pandemic in 2023 and it could take up to ten years to return to a level considered to be full employment.

Looking for a job for six months, financial consultant Guilherme Veiga, 18, hopes to get out of this situation soon. He left the fair with an invitation to participate in training and a selection process at a consortium company in Greater São Paulo.

“I’m finishing high school and a technical course in administration. It’s not my first job and I know a lot of people are trying, but I’m confident,” he says.

In a statement, the director of the unit, Heber de Godoi Carvalho, recalled that the number of unemployed people in the municipality increased with the pandemic. In view of the economic recovery, he says, the university decided to form a partnership with civil entities to offer places.