Unemployment in Brazil Breaks Record, Affects 13.1 Million People

RIO DE JANEIRO, BRAZIL – The reopening of trade and services amid the pandemic has exacerbated the rise in unemployment in Brazil, which hit a record 13.8 percent in the quarter ended in July. It is the highest mark recorded since the Continuous PNAD (National Household Sample Survey) series that computes the official unemployment in the country, began in 2012.

This represents 13.1 million people in the employment lines, according to IBGE (Brazilian Institute of Geography and Statistics) data released on Wednesday, September 30th. In the previous quarter ended in April, unemployment in Brazil had closed at 12.6 percent. In January, the rate stood at 11.2 percent.

The rise in unemployment occurs when the country starts to feel the relaxation of social isolation imposed throughout Brazil as a means to contain the spread of Covid-19. The first known Covid-19 death in the country occurred on March 17th. From then on, with the spread of the disease, the country closed bars, restaurants and trade as a means to fight the pandemic.

In April, the economic impact began to be felt more intensely, as the restrictive measures lasted from the start to the end of the month. In June, some states and municipalities began to reopen the economy, with shopping malls, bars and restaurants back in operation. In July, this trend intensified, while the novel coronavirus continued to kill thousands of people in Brazil.

With the relaxation, many workers began to look for a job again and entered the official unemployment statistics in the country. Only those seeking a formal job are considered unemployed by IBGE. With social isolation and emergency aid, some chose to defer their search. Faced with this scenario, economists heard by Bloomberg news agency projected unemployment to reach 13.7 percent in the quarter ended in July.

Last week, the IBGE released the PNAD Covid data, a special survey designed to estimate the impact of the pandemic on the labor market. However, the data can not be compared to the Continuous PNAD, which provides the official unemployment figures in the country.

In the August release, the IBGE noted that unemployment in Brazil has increased 27.6 percent in four months of pandemic. In May, the unemployed population stood at 10.1 million, a figure that rose to 12.9 million in August. When compared to July, the unemployment rate in the country rose from 13.1 to 13.6 percent.

Source: Folhapress