Brazil’s unemployment rate rose to 6.5% as of January 2025, up from 6.2%, marking the highest level in five months. The unemployed population increased by 5.3% to 7.2 million, while net employment dipped by 0.6%. Average real wages rose by 1.4% to R$3,343 monthly amid these challenges.

The unemployment rate in Brazil increased significantly to 6.5% for the quarter ending January 2025, up from 6.2% in the preceding three-month period. This marks the highest unemployment level seen in five months and aligns with market predictions of 6.6%. This rise in unemployment signals a shift from Brazil’s previously stringent labor market, raising concerns related to persistent high inflation and a weakened currency that may be affecting overall demand in the economy.

The total number of individuals unemployed rose by 5.3% since the last moving quarter, amounting to approximately 7.2 million. Concurrently, net employment experienced a decrease of 0.6%, resulting in a total of 103 million employed individuals. Additionally, there was a notable increase in the population not engaged in the labor force, now totaling 66.8 million individuals.

Despite these challenges, average real wages did see an increase of 1.4%, reaching R$3,343 monthly. This wage growth offers a glimmer of positive economic movement amidst rising unemployment and a shrinking labor force participation. However, the overall employment landscape remains concerning as economic factors exert pressure on the job market.

In summary, Brazil’s unemployment rate has escalated to 6.5%, indicating a departure from a previously tight labor market, influenced by economic inflation and currency devaluation. The unemployed population has risen considerably, reflecting increasing economic challenges. On a positive note, real wages have grown, but the context of rising unemployment casts a shadow on overall economic stability.

Original Source: www.tradingview.com