ZCZC
BCN-33
BRAZIL-ECONOMY-UNEMPLOYMENT
Brazilian unemployment continues to dip — slowly
RIO DE JANEIRO, Aug 1, 2018 (BSS/AFP) – Brazil’s unemployment misery eased
further in June, dipping to 12.4 percent, according to government statistics
Tuesday, although much of the improvement was credited to creation of less
secure jobs.
The rate for the three-month period between April and June means there are
still 13 million people out of work.
However, it was the third consecutive reduction in unemployment, falling
from 12.7 percent in the March to May period. Analysts had expected only a
more modest fall to 12.6 percent.
During the same period last year, unemployment in Latin America’s biggest
economy reached 13 percent, with nearly 13.5 million without work.
The latest improvement comes despite a truckers’ strike in May that
brought the country to a halt for almost two weeks.
However, a significant part of the positive trend is due to growing
numbers of people finding work in the informal sector, where workers have far
fewer rights and job security, the IBGE statistics office said.
Last week, the central bank revised downward its prediction for economic
growth this year in Brazil to 1.6 percent. In March, the forecast had been
for 2.6 percent GDP growth.
The numbers confirm a steady but still stubbornly weak recovery from
Brazil’s deepest recession on record, which saw the economy shrink 3.5
percent both in 2015 and 2016. In 2017, there was one percent growth.
Uncertainty over presidential elections in October and widespread
discontent over a rolling corruption scandal in big business and high-level
politics have added to the gloomy investor climate.
BSS/AFP/HR/1050