Brazil’s unemployment rate seems to be skyrocketing, with the numbers steadily climbing for a third month. This comes as a shock, considering last year’s decline, but suggests that the breather may have been temporary instead of a sustainable pickup in employment.
The Brazilian Institute of Geography and Statistics or IGBE confirmed that the unemployment rate rose to 13.1% in the three months to March 2018, rising above 12.6% in the October-December 2017 period.
The unemployment rate is believed to be affecting about 14 million people. The lack of jobs is a consequence of on of the worst recessions in Brazilian history, where inflation skyrocketed to 10.6 % in 2015.
According to Reuters, steady growth in off-the-books jobs, which does not have access to work benefits, had driven a nine-month string of falling unemployment that ended in December. Thus far, informal unemployment suffered at the start of 2018 as contracts for temporary holiday-season workers expired, while formal employment has yet to show signs of rising.
This is a clear indication that Brazil’s slow and uneven economic recovery may take a while before trickling down to the labour market.