The IAEmp (Antecedente Employment Indicator) in Brazil renewed a peak since December last month, reflecting the improvement in the sanitary situation and the heating up of economic activity, informed this Tuesday (7th) the FGV (Fundação Getulio Vargas).
The IAEmp, which anticipates the direction of the labor market in Brazil, rose 1.4 points in May, to 80.9 points, the highest level since the end of 2021 (81.8). In April, the indicator had also touched the maximum since last December.
According to FGV, five of the seven components of the IAEmp had a positive impact on the May result, with emphasis on the indicators of Current Business Situation and Business Trends in the industry, which contributed 0.9 and 0.5 point, respectively, to the general high.
Rodolpho Tobler, economist at FGV Ibre, said that “the second consecutive rise in the IAEmp suggests a more favorable scenario for the job market at the turn of the second quarter”, adding that the improvement in the national health situation and an upturn in economic activity seem have contributed to the improvement of the indicator.
However, “caution is still needed, given that the indicator remains at a low level and with prospects for a slow recovery, considering that economic activity continues with a low projection for the year 2022 due to high inflation and more restrictive monetary policy”, he warned. The specialist.
IBGE data released last week showed that the unemployment rate in Brazil reached the lowest level since the beginning of 2016 in the quarter to April, at 10.5%, a better-than-expected result in the face of a record level of the employed population. .
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