The International Labor Organization (ILO) has released its projections for 2017. The entity forecasts that 3.4 million people will lose their jobs this year. Furthermore, Brazil alone will represent one-third of the global rise in unemployment.
With 1.2 million newly unemployed people, there will be 13.6 million total Brazilians without a job – i.e. 12.4 percent of the population. Since the Brazilian economy is only slowly recovering from its worst recession in a century, the unemployment rate should further increase in 2018 as well.
ILO’s director-general, Guy Ryder, alerted that the challenges are particularly difficult in Latin America, and that could lead to the rise of social unrest. As a consequence, Latin America is among the regions that people are most wanting to leave.
Brazil’s unemployment rate will be twice as large as the average among emerging economies (5.7 percent).
Brazil’s rise in unemployment
2016 was already a rough year for Brazil. Unemployment rates reached 11.9 percent in the last trimester ending in November, counting 12.1 million Brazilians out of work. This is the highest level of unemployment since 2012, when the national research institute IBGE first started recording such numbers.
In comparison with last year’s numbers, certain job groups remained stable. Domestic workers, such as maids, nannies, and in-home workers, mostly kept their jobs. Employment in the public, commercial, and transportation sectors remained stable, while the agricultural and construction sectors lost jobs. Unregistered employees and employers actually increased in numbers, while the self-employed and registered employees fell.