Happy Friday! Today: Brazil is creating jobs, but the labor market is not so rosy. Brazil surpasses the U.S. on first-dose vaccination ranking. Central Bank independence gets Supreme Court go-ahead. Lula looks to make deals with Bolsonaro allies.
Brazil continues adding jobs, but wages stagnate
The Brazilian economy added 316,580 new formal jobs in July, according to the Labor Ministry, surpassing market expectations. The total tally of net new jobs now sits at 1.84 million in 2021. The jump was driven by the labor-intensive services sector, which is the backbone of the Brazilian economy.
Why it matters. Job creation this year is at its best since 2010. While the large part of the trend merely consists of recovery after a dreadful 2020, it shows that with vaccination advancing, the economy is becoming more dynamic.
Yes, but … Salaries are not going up. The average monthly salary for new admissions sat at BRL 1,802 (USD 342), down 5 percent from April — when it peaked over the past 12 months.
- Despite positive numbers for formal jobs, Brazil’s unemployment rate remains at record levels (14.6 percent).
- The situation becomes even more challenging when we factor in the underutilization of the labor...