Unemployment Approaches 12% in Brazil

According to the Institute of Geography and Statistics, the unemployment in Brazil in the quarter ending in July reached 11.6%. Based on IBGE numbers, the number of unemployed in the South American nation rose 37.4% compared to the same time period in 2015.

Another Brazilian files for unemployment benefits

The current rate of unemployment is the highest since 2012. In the first quarter of 2016 the unemployment rate was 11.2%, an increase of 3.8%.

In total, IBGE estimates that there are 11.8 million unemployed Brazilians. Of the 90.8 million workers that are employed, 34.3 million have signed workbooks. A signed workbook is used by the government to guarantee worker rights and benefits including, unemployment benefits.

With the increase in unemployment, the average worker's salary has also fallen. Currently, the average worker is making R$1,985 per month. Employers cannot legally lower employee salaries meaning new employees are being hired at lower rates. In relationship with the same time period in 2015, salaries dropped 3%. Average salaries remained stable compared to the previous quarter.

The number of people deciding to be self-employed, estimated at 22.6 million, rose 2.4% compared to 2015 and 1.5% compared to the first quarter.

Among the areas in which employers cut the most jobs, general industry fell 10.6%, and information technology, communication and financial activities, real estate, professionals and administrators dropped 9.8%. 

Source: Globo (in Portuguese) Unemployment Continues to Rise in Brazil