Brazil Unemployment Rate Lower than Expected

The unemployment rate in Brazil fell to 11.8 percent in the three months to July 2019 from 12.5 percent in the February to April period, below market consensus of 11.9 percent. The number of unemployed declined by 4.6 percent while employment rose by 1.3 percent. The labor force participation rate increased to 62.1 percent from 61.9 percent in the previous three-month period.

The number of unemployed declined by 609 thousand from the previous period, or 4.6 percent, to 12.569 million.

Employment rose by 1.219 million, or 1.3 percent, to 93.584 million, with most of job gains recorded in public administration, defense, social security and education (+288 thousand); industry (+265 thousand); agriculture, livestock, forestry, fishery and aquaculture (+249 thousand); other services (+216 thousand); domestic services (+132 thousand); construction (+83 thousand); trade (+46 thousand); and information and communication activities, finance, real estate, professional and administrative activities (+21 thousand). Meanwhile, job losses were registered in hotels and restaurants (-25 thousand); and transportation, warehousing and mail (-18 thousand).

The number of people in the labour force went up by 610 thousand to 106.153 million and those detached from the labour force dropped by 129 thousand to 64.822 million.

The average real income was estimated at BRL 2,286 in the three months to July, compared to BRL 2,311 in the three months to April.

Brazil Unemployment Rate Lower than Expected

IBGE | Joana Ferreira |
8/30/2019 12:25:38 PM