Brazil’s unemployment rate falls for first time since 2014

AFP
Residents of Rio Formoso municipality, affected by floods due to heavy rains, receive clothes at a temporary shelter in Pedro Albuquerque school, Barreras city, Pernambuco state, northeastern Brazil, on Tuesday. (AFP)

RIO DE JANEIRO: Brazil’s sickly economy got an unexpected glimmer of good news on Wednesday with unemployment figures showing a slight dip to 13.6 percent rather than yet another record rise.
It was the first fall in unemployment figures since 2014 and came amid expectations that Latin America’s biggest economy is finally emerging from its worst recession in history.
The IBGE state statistics office said that 14 million people were out of work in the February-April period, or 13.6 percent of the workforce. While still a huge number, the announcement at least put a stop to what had been a relentless series of increases.
With the previous rate at 13.7 percent, with 14.2 million unemployed, economists had been bracing for another hike to 13.9 percent, according to a forecast from Gradual Investimentos.
The marginally better situation will boost President Michel Temer’s attempt to stay in office despite a raging corruption scandal.
The conservative leader faces multiple calls for his resignation and a probe in the Supreme Court that could see him stripped of office over charges of obstructing justice and corruption.
Temer is attempting to rally political support, saying that his program of restoring fiscal responsibility to Brazil and implementing austerity measures is helping to end a two-year recession — the deepest in the country’s history.
On Thursday, gross domestic product (GDP) figures are due out and analysts expect them to show the economy is finally growing again, after eight consecutive quarters of shrinkage.