The unemployment rate in Brazil rose to 6.5% in January 2025, up from 6.2% in October 2024, reflecting economic pressures from inflation and currency depreciation. The unemployed population increased to 7.2 million, net employment dropped, while real wages grew to R$3,343 monthly.
Brazil’s unemployment rate surged from 6.2% to 6.5% in the quarter ending January 2025, marking the highest level in five months. This rise aligns closely with market projections of 6.6%, signaling a shift from the previously tight labor market amidst ongoing concerns over high inflation and a depreciating currency, which have adversely affected overall demand.
The number of unemployed individuals increased by 5.3% from the prior quarter, reaching 7.2 million. Furthermore, net employment saw a decline of 0.6%, totaling 103 million, as the jobless rate rose together with a growing segment of the population not participating in the labor force, now at 66.8 million.
On a more positive note, average real wages grew by 1.4%, reaching R$3,343 monthly. This wage increase may provide some support to consumers, despite the challenging employment landscape and economic pressures that persist throughout the country.
In summary, Brazil is experiencing a noticeable rise in its unemployment rate, increasing to 6.5% in early 2025. This shift highlights the struggles within the labor market exacerbated by inflation and currency issues. While average wages saw a slight increase, the overall employment scenario remains concerning, with a significant number of individuals exiting the workforce.
Original Source: www.tradingview.com
