Trend is for a favorable job market, but 2023 is a challenge, says economist

The trend is for the job market to remain favorable, according to researcher and economist at FGV-IBRE, Rodolpho Tobler.

This Friday (29), the IBGE announced that the unemployment rate in Brazil stood at 9.3% in the quarter ended in June, a drop of 1.8 percentage points compared to the previous quarter.

“My assessment is that we may have more vacancies, but this trend should not be very long, because we have seen an upturn in economic activity in this first and second quarters,” he said, to the CNN Radio .

He believes the boost will be felt because “the government has taken stimulus measures that should still impact the third quarter.”

However, Tobler makes a caveat: “Towards the end of the year and the beginning of 2023 is the great challenge, we hope the pandemic goes off the radar, and then economic activity will dictate the pace of recovery. ”

“But for 2023, the outlook is for very weak economic growth, and by the end of 2022 the market may also have a slower reaction from the end of this year onwards”, he added.

The economist sees the injection of more resources into the economy – through the extension of Auxílio Brasil – will serve to “alleviate the situation of the poorest population and heat up the economy.”

“The trade and services sectors are likely to remain positive in the coming months,” he said.

However, “the issue is what adds fiscal risks, in the long run could bring weaker economic growth.”

*Produced by Rodrigo Tammaro