The unemployment rate in Brazil dropped to 12.1% in the quarter ended in October 2021. Even with the drop, the country still registered 12.9 million unemployed in the period.
The data were released this Tuesday (28) by the IBGE (Brazilian Institute of Geography and Statistics).
In the previous quarter, ended in July 2021, the unemployment rate was at 13.7%. Between August and October 2020, it was 14.6%.
According to official statistics, a person is unemployed when he doesn’t have a job and keeps looking for new professional opportunities. The IBGE survey considers both the formal and informal sectors.
The unemployment rate estimated by the institute (12.1%) was below of financial market expectations. Analysts consulted by Bloomberg agency projected an indicator of 12.3% for the quarter ended in October 2021.
Unemployment at a high level worries analysts, even more in a context of high inflation, as is the case today.
Together, difficulties in the labor market and rising prices affect household consumption, one of the country’s growth engines.
No wonder the forecasts for the performance of economic activity in 2022 have been revised downwards.
Financial market analysts started to project growth of less than 0.5% for GDP (Gross Domestic Product) for next year, according to the Focus bulletin, released by BC (Central Bank) on Monday (27). The estimate is for an advance of 0.42%.
According to analysts, the weakness of the economy as a whole puts the incipient improvement in the labor market in check.
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