Itaú BBA - Unemployment reaches 12.9% in April

Macro Brazil

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Unemployment reaches 12.9% in April

May 29, 2018

Slide in seasonally-adjusted unemployment was driven by declining participation rate

For the version with all charts and tables, please open the attached pdf file 
 

According to the national household survey (PNAD Contínua - IBGE), Brazil’s nation-wide unemployment rate receded to 12.9% in the quarter ended in April from 13.1% in the quarter ended in March.

Using our seasonal adjustment, unemployment fell to 12.3% from 12.5%, driven by the decline in the participation rate and the increase in informal employment.

The real wage bill shrank 0.3% on a seasonally-adjusted quarterly basis, but the gain in year-over-year terms picked up to 2.5% from 1.8%.

The labor market continues to advance slowly, reinforcing one of the factors behind our decision to reduce our forecast for GDP growth in 2018 to 2.0% from 3.0%.
 

Artur Manoel Passos
Alexandre Gomes da Cunha


 

For the version with all charts and tables, please open the attached pdf file 



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