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Return of demand for services drives job growth, says researcher

The unemployment rate in Brazil stood at 9.8% in the quarter ended in May, the lowest rate for the period since 2015. In an interview with CNN Fernando de Holanda, researcher at FGV/Ibre says that what surprised him “was the strength with which he returned to work”.

“This comes a lot from the recovery from the pandemic. The creative economy sector is a sector that demands contact. So, it is essential to return to normality”.

According to him, other sectors, such as personal services, travel, and meals away from home, which are activities that were restricted, also helped. “People are starting to demand these services again, and this has driven job growth very strongly in this first quarter, surprising positively.”

In addition, the expert says that the drop in unemployment was already expected.

“Once the crisis hits the economy, what we start to observe is that people are willing to work for a lower salary. So they take jobs that pay less, and that reduces the wage bill. This was, in a way, expected, and it is even a natural effect of what happens in an adjustment, even more in a strong crisis that was the pandemic.”

See the full interview above

Source: CNN Brasil

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