Brazil’s Jobless Rate Hits Record Low, But Triggers Inflationary Concerns
Brazil’s unemployment rate has reached its lowest level on record, according to data from the Brazilian Institute of Geography and Statistics (IBGE). The jobless rate stood at 6.2% in the August-October quarter, the lowest ever in the current IBGE data series, which dates back to 2012. This news has been cheered by the government, but concerns about inflation have also been raised.
The unemployment rate has been hovering around historically low levels for the past year, contributing to the central bank’s decision to tighten its monetary policy again. The bank has already raised interest rates, and some forecast that it will do so again in December, potentially reaching a terminal rate of 14.25%.
President Luiz Inacio Lula da Silva has made reducing unemployment a top priority and celebrated the latest figures, highlighting that the jobless rate is now at a historically low level. The number of jobless people in Brazil was 6.8 million in the August-October period, down 8% quarter-on-quarter. Employed citizens totaled 103.6 million, up 1.5% on a sequential basis.
Real wages, on the other hand, were up 0.8% in the quarter to 3,255 reais ($534.39). The government’s success in reducing unemployment has been seen as a sign of strength, while also leaving room for future monetary policy tightening to mitigate inflationary pressures.
