Real wages in Brazil have risen by 8.7% since December last year

The actual earnings of Brazilian workers have improved in the last nine months due to the increase in adequate wages and the historic decrease in unemployment.

The Brazilian labor market is registering the highest dynamics since 2019.

It is on track to overcome all the adverse effects of the pandemic and the financial crisis inherited from the previous leftist government.

Statistics from the Brazilian Central Bank have confirmed that the real wage bill for all jobs (public and private) increased by up to 8.7% between December 2021 and August 2022.

This way, practically all the ground lost by the pandemic since March 2020 has been recovered.

This indicator combines the real wages and the number of workers receiving these inflation-adjusted incomes.

The reactivation of the wage bill is due to two factors: the actual recovery in the purchasing power of wages, job creation, and the historic decline in the unemployment rate.

The presidential candidate of the Brazilian left, Lula da Silva, warned of an alleged “wage emergency” and accused Jair Bolsonaro of lowering wages if he wins in the second round.

Da Silva, however, has yet to provide any evidence or statistical support for his claims.

The statistical ranks of Brazil’s Monetary Authority appear to be turning their backs on the socialist candidate, as August 2022 recorded the highest level of genuine workers’ incomes since 2019.

Real wages increased by 8.3% between November 2021 and August 2022, excluding the component of the number of jobs created in the economy.

In addition, Brazil’s seasonally adjusted unemployment rate fell to 8.9% in August, the lowest level since the second quarter of 2015.

Not only will there be an increase in wages starting in 2021, but there will also be more jobs to earn those incomes.

In contrast to today, real wages in Brazil plummeted by 6.52% between October 2014 and July 2016 under the last PT government for reasons that were due to the economic model of the time and not to an unexpected shock such as the 2020 pandemic.

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