FGV Ibre employment indicator has the highest level in the last seven months

The Antecedent Employment Indicator (IAEmp), measured by the Brazilian Institute of Economics of the Getúlio Vargas Foundation (FGV Ibre), registered, in June, the highest level since November last year. The result, released on Tuesday (5), is the third consecutive high.

This month, with an advance of one point, the index reached 81.9 points.

The indicator has its neutrality level at 100, from which trends are interpreted as positive or negative, depending on the direction. The peak of the historical series, which started in June 2008, was reached in February 2018, with 109.6 points.

The lowest level occurred in April 2020, at the beginning of the Covid-19 pandemic, when the index reached 39.7 points.

The study coordinator, Rodolpho Tobler highlights that the recent performance of the index is a confirmation of the good moment of the job market in the first half of the year. “The heating up of economic activity combined with the greater control of the pandemic favored the creation of vacancies in this period”, says the economist.

However, despite the good situation, Tobler predicts lower growth in the indicator in the coming months.

“The deceleration of the growth rate of the indicator and the still low level signal caution for the coming months”, he points out. “It is still possible that new highs may occur, but the trend for the rest of the year is for greater fluctuations considering the uncertainty of the macroeconomic environment”, he evaluates.

In the period, five of the seven components evaluated by the IAEmp had favorable performances. Only the items “expected employment” and “current business situation”, in the services category, showed negative variations.