Even with 12 million unemployed, we see the market reestablishing itself, says economist

Even with 12 million people looking for a job, it is possible to see a process of recovery in the job market, according to economist Étore Sanchez.

“It is possible to talk about resumption, because we were at a much worse level. We have been seeing a strengthening of the market and labor since mid-2021. The surprise has been systematic. Vacancies are being created, the unemployment rate is on a downward trajectory, it is Brazil reestablishing itself after the traumatic event that was the pandemic”, he told CNN this Thursday (31).

The unemployment rate in Brazil was 11.2% in the moving quarter ended in February, informed the IBGE (Brazilian Institute of Geography and Statistics) this Thursday (31). The number represents a variation of 0.4 percentage point in comparison with the previous quarter (11.6%).

The expert explains that, during the worst moment of the pandemic, many people stopped, including looking for a job, due to the isolation policy, which reduced the workforce. “Now, we are already seeing more people looking for and finding jobs. It is evident that the number is still bleak. But it is an improvement process,” he says.

Likewise, the level of informality in Brazil is still very high. About half of the workers are in the informal market, he points out. However, data from Caged have shown a strengthening of the sector of workers with a formal contract.

“Although the GDP does not grow as much as it was observed in 2021, in perspective for 2022, the labor market should show greater formalization, that is, improve its quality at the margin and include more people throughout this year”, he says.

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*Posted by Ligia Tuon