Business

Brazilians’ wages are rising — for now

An improved job market and lower inflation strengthen families' income, after months of falling salaries. But the trend might be short-lived

income inflation 25 de Março Street: Brazil's massive popular commerce region. Brazilians are more willing to spend as inflation eases. Photo: Isaac Fontana/Shutterstock
25 de Março Street: Brazil’s massive popular commerce region. Brazilians are more willing to spend as inflation eases. Photo: Isaac Fontana/Shutterstock

For months, real wages in Brazil were shrinking, even as the job market recovered from the hit of the Covid pandemic. But recent figures now show a reversal in this trend, with August data close to last year’s levels (at least in nominal terms). 

Whether this improvement can be sustained is an open question, particularly given the more pessimistic outlook for the economy in 2023.

Per Brazil’s latest unemployment figures, the rate of people out of a job dropped to the lowest level in seven years in the rolling quarter through August, to 8.9 percent. At the same time,...

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