In Brazil, ILO sees labor market stabilizing after recovering pre-covid levels

RIO DE JANEIRO, BRAZIL – The International Labor Organization (ILO) evaluates that the labor market in Brazil has stabilized around the current level and is already overcoming the huge unemployment caused by the covid-19 pandemic.

According to the ILO, Brazil had a 14.8% contraction in the number of hours worked in 2020, equivalent to 10.8 million fewer jobs than the last quarter of 2019, before the pandemic. That drop was 2.4% in 2021, representing 1.74 million fewer jobs.

Specifically, in the last quarter of 2021, the number of hours worked in the country turned positive again compared to the last quarter of 2019, up 1.7%, with the extra hours worked representing 1.29 million full-time jobs of 48 hours per week.

This year, between January and March, the movement remained positive, but with a slight slowdown to a high of 1.6%, equivalent to 1.160 million additional jobs.

For the ILO, this slight deterioration between December and March should be interpreted as a normal reversal because solid growth after the reopening of the economy lasts for a limited time. It says that its estimates are adjusted to population growth.

According to the entity, the change in hours worked in Brazil should be expected to stabilize around the current level.

The ILO evaluates that the increase in commodity prices benefits the country, with a substantial increase in the trade surplus.

However, it notes that inflation is high and is on a trend that could further tighten monetary policy. “This is a negative risk for the labor market,” says an economist from the entity.

With information from Valor Econômico