Brazil’s unemployment rate dropped to the lowest on record in 2012 as companies expect economic growth to rebound after slowing for two consecutive years.
The jobless rate remained at an historic low last year as companies antecipated that record low borrowing costs, government tax breaks and increased public spending would fuel economic growth. Near full employment and rising real wages have pressured inflation, which has remained above the central bank’s 4.5 percent target for 28 months.
The chart below tells the whole story. Quite stunning … the question now is how these numbers will behave in 2013 considering the government’s actions did not bring the expected economic rebound it so badly desired.