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.

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6 Responses to About Brazil’s record unemployment rate …

  1. Tom says:

    The real story is in the DIESE numbers poll. The IBGE poll (above) deems you are employed if are throwing balls in a traffic light …

  2. raffbr says:

    Unemployment rate that implies a 25m people workforce, out of a country with 200m? That s clearly correct, yeah.. where are the other 50m that are economically active but simply do not show up in any stats?

  3. Rodrigo Rodrigues(Official) says:

    Brazilian  sources are very nationalistic and narcissitic usually . It’s like mine is bigger than yours. Everything  will be fine We  rule blah blah. In an age of global competition with many hungry countries competing with us our lack of good primary education, and stupid government proposals, along with a host of other things, is combining to make us uncompetitive in many ways. It is like the people need to fight against the system to survive in Brazil, as opposed to the system working for them. But like most 3rd world countries the ruling elite cheer and make policies for themselves, and the middle class gets sapped away
    If this blind leading the blind Administration had spine ( Dilma is so proud of her actions and words)they would declare an energy crisis, de-regulate, drill everywhere and I mean EVERYWHERE, soften entry regulation on nuke plants and use Treasury to subsidize alternatives such as solar and Wind energy even zero point energy.This would create millions of jobs and we could become an energy exporter and compete globally by providing something besides agrigulture and commodities in general the world desperately needs to grow. That would add trillions to the economy and we can no longer depend on PTrobras, which is starting to collapse , 
    Most jobs are secured by QI (quem indica=who recommended you that the boss personally knows well ).
    Salaries in Brazil are quite low and might not even cover living expenses no wonder so many people live in Favelas.
    Stimulus ( 72 to 84 month car finance trap)helped save the multinational car companies from declining sales and had the desired effect of keeping people employed at the expense of savers .
    After this illusion of ownership is over  demand for autos will fall into the abyss. 
    The same will be the fate of industries like Realestate ( Get rich quick scheme)and infrastructute which are overvalued at the present moment .
    By lowering interesting rates and fees they created artificial demand , who needs a 40000 or 60000 reais car?
    Most people could make it with a 3000 dollar old vw beetle.
    In many cases the simulative measures just accelerate future sales to an earlier date, at the taxpayer’s expense. 
    This ” job Creation ” is being fed with steroids .
    The  economy’s true, unsteroided, unstimulated performance is a lot lower than the one we observe.

  4. frank stein says:

    Take a walk in “cracolandia” to see the real Brazil.

  5. Ranghora says:

    Lies…. Lies….. Lies …. That’s all it is. One just needs to walk the streets of any city in Brazil (any suburb and/or Business districts) to see the number of people trying to survive without having ever held an officially recognised job, with his/hers “carteira de trabalho” ever registered by anyone. The cash economy, outside of the control of the authorities must be larger than the official over taxed economy. Many people do not have any interest in holding an official job and many millions never ever registered in any government database. Not sure where IBGE gets their numbers from, but believe me it is not the real thing. Unemployment in Brazil is guaranteed to be around the 25% mark at any given time.

  6. Pedro says:

    Easy to have low unemployment when every business employs 3 people to do the job of 1…. How many times have I been in a store, café, or restaurant with more people working in them than actual customers being served.
    Just step onto any bus (if you dare)… There is one driver and one person to make change. Is that really necessary in this day and age?
    Or try paying any utility bill, gov fee or driving fine.
    Some must be paid at one bank, others at another bank… Almost never are they to be paid at the place the bill is issued which means 3 lines… one to get the bill, another at the bank, and back to the first place to prove you’ve paid the bill and receive your service.
    Ketchup packets don’t have a starter rip to make it easy to open… instead napkin dispensers are equipt with little blades designed to rip open the packets (forget getting the paket open if your order is to go) and try getting a philips head screw anywhere that is not a Leroy-Merlin (French Home Depot style hardware store)… forget it… You can find the philips screw driver easily, but never the screw.
    Buy an air-conditioner one place but the metal triangle to properly install the thing in a window you’ll have to get somewhere else, and if you need an adaptor for your outlet, you’ll need to visit a third store.

    Seriously… I love Brazil… provided I don’t anything done.
    The minute one must actually get something done, it’s hell on earth.

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