Heated demand explains positive employment result in the 2nd quarter, says economist

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“The more positive second quarter for employment is explained by stronger demand”, in the evaluation of Professor of Analysis of Economic Scenarios at Ibmec-SP, Fernanda Mansano.

According to the IBGE, the unemployment rate is 9.8% in the quarter ended in May. The market’s expectation was that the rate would remain at 10.24% in the period.

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“We have seen positive dynamics this quarter, projections were that the Brazilian economy would slow down, but we had government actions such as the withdrawal of the FGTS that positively affect consumption, consequently companies, sales and employment.”

The economist, however, believes that, in the third and fourth quarters, there will be no actions to supplement income.

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“This can negatively affect both employment and income, however, by the end of the year we should see an unemployment rate in the single digits, I believe around 9.7%.”
She warned: “What is worrying is inflation, which erodes the purchasing power of these workers and affects economic activity.”

For Fernanda Mansano, June should still bring positive data”: “But the second semester, adding inflation, interest at the current level and the world economy contracting, I believe that we will have a challenging second semester and possibly an economic contraction”.

*With production by Isabel Campos

Source: CNN Brasil

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