More than 12 million Brazilians are unemployed, according to data released by the Brazilian Institute of Geography and Statistics – the worst result ever. It means that 11.8 percent of the Brazilian workforce is out of a job. One year ago, the unemployment rate was at “only” 8.7 percent. The average income of the Brazilian worker has also decreased and is now 2,011 Brazilians Reais (roughly $610). It is 1.7 percent less if compared to one year ago.
After contracting 3.8 percent in 2015, the Brazilian economy is expected to shrink 3.15 this year, according to predictions published by Brazil’s Central Bank. Despite signs of improvement in the country’s economy, as stated by the International Monetary Fund, the deterioration of our labor market is expected to continue in the upcoming months. To sum things up: it is going to get much worse before it starts getting better.
According to the Brazilian rating agency Austin Rating, Brazil has one of the world’s worst unemployment rates in the world. Compared to 51 countries, Brazil posted the sixth-worse unemployment rate, similar to countries like Montenegro, Jordan, and Cyprus.
President Michel Temer tries to dodge from taking the blame for the economy. According to him, who took office in May, the recession, elevated inflation and lack of investments are due to his predecessor’s disastrous economic policy. Under Dilma Rousseff, Brazil saw inflation rates rise to double-digit figures and investments are now 25 percent smaller when compared to the pre-Rousseff years.
The President stated that Brazil is going through the “worst economic crisis of its history,” and defended his project to freeze public spending for the next 20 years.