Brazilian Unemployment Rate Drops Slightly From Record Level

Brazil's unemployment rate pulled marginally back from record levels to 14.6 percent in the rolling March to May quarter, according to official figures released on Friday

Rio de Janeiro, (APP - UrduPoint / Pakistan Point News - 30th Jul, 2021 ) :Brazil's unemployment rate pulled marginally back from record levels to 14.6 percent in the rolling March to May quarter, according to official figures released on Friday.

Unemployment in Latin America's largest economy had been at a record 14.7 percent since the January to March quarter.

It amounts to 14.8 million people being out of work, the IBGE statistics institute said.

Compared to the March to May period in 2020, when the rate was 12.9 percent, there are 2.1 million more people unemployed.

Experts believe the only way to reactivate the economy would be through progress with the country's coronavirus vaccination program.

Over the past 18 months since the pandemic appeared, more than 550,000 Brazilians have died of Covid-19.

However, it will take time for economic activity to catch up with increased immunizations.

"In a climate of increased uncertainty ... business people are postponing investments and formal contracts," said Paulo Peruchetti, from the Brazilian institute of economics at the Getulio Vargas foundation.

"This level of uncertainty will probably remain high due to financial risks and political turmoil, which should increase in 2022 with a highly polarized presidential election." Far right President Jair Bolsonaro is expected to face fierce competition from leftist former leader Luiz Inacio Lula da Silva.

Peruchetti said the informal sector would be the one driving a recovery in employment. It includes people paid under the table, doing odd jobs, working in the street, and others who like them do not pay taxes.

The informal sector reached 40 percent of the workforce, or nearly 35 million people, in the March-May quarter.