The Brazilian Institute of Geography and Statistics (IBGE) has recently published the latest unemployment rate: 13.1 percent. It marks the third-straight quarter during which the number of unemployed workers has gone up. While there are seasonal reasons for this increase, as temp workers have been laid off, they don’t tell the whole story.
Unemployment rates indicate the health of an economy. In Brazil’s case, the rising unemployment suggests a loss of steam in the Brazilian recovery. It seems inevitable that Brazil will have a GDP growth smaller than expected. The 3 percent growth initially forecast by the government is now a longshot.