Brazil: Unemployment remained at 7.6% in January, according to new data.

Despite the good news, the Brazilian market fell due to Petrobras’ poor performance in recent days, prompted by a possible change in its dividend policy. Petrobras is Brazil’s most important oil production company and is state-controlled.

According to analysts, the data still signals strength in the labor market, including an increase in the employed population and a rise in average income. Income grew by 3.8% over the year.

The unemployment rate of 7.6% marks the lowest for quarters ending in January since 2015 (6.9%). The result slightly exceeded the median of forecasts from the financial market. Investors projected an unemployment rate of 7.8%.

The institute notes that unemployment typically declines at the end of the year and increases in the first months of the following year. However, until January 2024, this trend has not been observed, as the numbers indicate stability.

“When we talk about layoff processes, we try to evaluate this phenomenon within the entire quarter of the following year [January to March]. What we have for 2024, so far, is only the month of January,” said Adriana Beringuy, coordinator of household surveys at IBGE.

Unemployment Measurement