“The recovery is likely to be slower and slower,” says an economist on the unemployment rate

In an interview with CNN, the chief economist at MB Associados, Sérgio Vale, stated that the unemployment rate, which dropped to 12.6% in the third quarter, could reach 11.5% by the end of the year, a figure close to what it was before the pandemic. Despite this, recovery is likely to slow down next year.

According to Vale, “we have a recovery based on the end of the pandemic, on hiring, in the area of ​​services, but there is a complicated perspective for next year, which puts a certain constraint on this rate”.

According to the data from the General Register of Employed and Unemployed (Caged), published by the Ministry of Labor and Welfare this Tuesday (30), Brazil created 253,083 new formal jobs in October 2021.

Sérgio Vale says that the unemployment rate is better, it’s lower, but looking at the numbers, it’s possible to see problems.

“The jobs that are growing are much more informal than formal; and we have real wages falling because of inflation. This causes the population’s purchasing power to decrease”, he explains.