Brazil’s unemployment rate rose to 6.5% in January 2025, marking the highest level in five months. The rise is attributed to high inflation and a weak currency, with the unemployed population increasing by 5.3% to 7.2 million. Net employment dropped by 0.6%, despite a modest increase in average real wages.
Brazil’s unemployment rate increased to 6.5% for the quarter ending January 2025, rising from 6.2% in the preceding three-month period. This increase marks the highest unemployment rate in five months, aligning closely with market forecasts, which estimated a rate of 6.6%. Such a shift indicates a loosening in Brazil’s previously tight labor market, amid ongoing concerns regarding high inflation and a weakened currency impacting overall demand.
The number of unemployed individuals surged by 5.3% compared to the previous quarter, totaling approximately 7.2 million people. Concurrently, net employment declined by 0.6%, resulting in a labor force of approximately 103 million. There was also a notable rise in the number of individuals outside the labor force, increasing to 66.8 million.
In terms of wages, average real remuneration saw a modest increase of 1.4%, amounting to R$3,343 per month. Despite the rise in wages, the overall labor dynamics suggest persistent economic challenges affecting employment prospects and living standards in Brazil.
The uptick in Brazil’s unemployment rate to 6.5% underscores the ongoing economic pressures faced by the country. The increase in unemployed individuals and decline in net employment reflect broader issues related to high inflation and currency weaknesses. Although average wages increased, the overall economic context indicates that challenges persist in the Brazilian labor market.
Original Source: www.tradingview.com
