Most affected by unemployment, the Northeast and Southeast show signs of recovery, says FGV

A study by FGV-IBRE that analyzed labor market indicators over the last 3 years showed that the Northeast and Southeast regions were the most affected by unemployment caused by the Covid-19 pandemic.

In an interview with CNN this Tuesday (9), researcher Janaína Feijó, from FGV-IBRE, Southeast and Northeast have “the highest unemployment rates.”

According to her, the reason is clear: both regions have a large portion of the population in the informal and service sectors that suffered from the restrictive measures against the coronavirus.

Feijó highlighted that there are already signs of recovery: “Since the end of 2020, we have identified a slow and gradual recovery in employment, but, however, most people who are returning to the labor market are looking for, but are not finding vacancies .”

In the Northeast, “as immunization expands, there is an improvement in the indicators, with a faster and more informal recovery”, he explained.

The recovery in the Southeast, according to Janaína, takes place at a slower pace than in the Northeast – which had a growth of 5.4% of the employed population –, but she reinforced that the region starts from “a less complicated situation.”

Janaína Feijó’s expectation is that, next year, the unemployment rate “will reach 12.4%, a rate a little higher than that verified in the second half of 2019, the tendency is for the market to gradually pick up. ”