FGV employment indicator rises again in April after 5 consecutive declines

Published this Thursday (5th) by the Getúlio Vargas Foundation (FGV), the Antecedent Employment Indicator (IAEmp) rose 4.5 points in April and closed the fourth month of the year at 79.5.

That was the first rise after five consecutive monthly declines. In the quarterly analysis, the indicator rose one point and is at 76.5.

The current result is the best since December 2021, when the index closed at 81.8 points. The IAEmp varies on a scale from zero to 200 and has its neutral point at 100.

Variations from it reveal positive or negative trends, according to the meaning.

The April high is due to increases in the seven components that make up the indicator.

The result was driven by the increase in the current business situation, in the services survey, which varied 1.6 points, followed by the current business situation, in the industry survey, with an increase of 1.2 points.

The economist at the Brazilian Institute of Economics (FGV Ibre), Rodolpho Tobler, sees the situation improving with reservations.

“The improvement in the month needs to be contextualized because the indicator remains at a low level and was driven by the service sector, which was more impacted by waves of the pandemic, as in the beginning of 2022, and which still has room for recovery”, says the expert. .

“The main challenge in the coming months will be to maintain this positive result, which will depend on the improvement of the macroeconomic environment”.

The peak of the historical series, started by FGV in June 2008, was 109.6 points, reached in February 2018.

The lowest level was reached in April 2020, the most critical moment of economic restrictions during the Covid-19 pandemic, when it reached 39.7 points.