The Leading Indicator of Employment in Brazil rose in December, but ended 2022 with a negative bias in view of expectations of a slowdown in the economy, according to data released this Thursday by the Getulio Vargas Foundation (FGV).
The IAEmp, which anticipates the direction of the labor market in Brazil, rose 1.6 points in December and reached 74.7 points, after two consecutive months of decline. However, according to the FGV, the indicator ends the year with a negative balance of 7.1 points.
“The IAEmp rose again in December, but caution is needed when interpreting this result. This month’s rise (December) offsets only about 15% of what was lost in previous months and the year ends with a negative bias with the result of the last quarter”, said in a note Rodolpho Tobler, economist at FGV Ibre.
According to him, the low level of the indicator seems to reflect the negative and challenging macroeconomic scenario for the year 2023.
“With the expectation of a slowdown in the economy, the labor market tends to react negatively and is unlikely to return, in the short term, to the upward trajectory it had in part of 2022,” added Tobler.
The components of the IAEmp show that in December the main positive contributions came from the indicators that measure the Current Situation and Business Trends, both in industry, in addition to the index that evaluates Employment in the coming months of the consumer.
Source: CNN Brasil
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