A World Bank report forecasts that the economic crisis caused by Covid-19 will cause negative effects on employment and salaries in Brazil for the next nine years, suggesting that full recovery will only come in 2031.
The institution notes that Latin American countries tend to take “many years” to recover when employment levels are affected. The report states that “great aftereffects” caused by crises also tend to persist for a long time in the region, which causes countries to have a “long and significant” reduction in formal employment rates.
The World Bank pointed out that the “scars” caused by the coronavirus will be more severe for less-skilled workers, that is, those without higher education. These citizens are likely to suffer greatly from the rise in unemployment and labor informality, as well as from the reduction in overall wages.
According to the Brazilian Institute of Geography and Statistics (IBGE), Brazil’s unemployment rate sat at 14.7 percent in the quarter ending in April, reaching 14.8 million people — the highest number on record.
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