Great news! Brazil’s government statistics agency says the unemployment rate in Latin America’s biggest economy was 5.2 percent in November — the lowest level since the government started keeping records in 2002. But… isn’t unemployment a lagging indicator?

 
According to Itau, this positive statistic may be only short-term “noise”:
We believe this pick-up in employment is temporary. Stronger growth in the working population … reinforces the evaluation that the steeper hike in employment tends to be reversed down the road. Additionally, other data show moderation in employment at the margin.
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