Lula Effect: unemployment drops higher than expected and reaches a nine-year low

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The rate, at 8%, is still high, but it has been falling at an impressive pace

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247 - According to the Brazilian Institute of Geography and Statistics (IBGE), the unemployment rate in Brazil showed a remarkable decline in the quarter ended in June, reaching 8%. This marks the best result for the indicator during this quarter since 2014, when a rate of 6.9% was recorded – a reflection of the confidence brought by the Lula government. Compared to the previous quarter, between January and March, the unemployment rate fell by 0.8 percentage point, totaling 8.8%. Furthermore, compared to the same period last year, the rate was 9.3%, showing a declining trend in unemployment in the country.During the same period, the absolute number of unemployed people also saw a significant decrease, reaching 8.6 million. This reduction corresponds to an 8.3% drop compared to the previous quarter, representing 785,000 fewer people in the unemployed condition. Compared to the last quarter of the previous year, this decline is even more remarkable, recording a decrease of 1.4 million unemployed workers.On the other hand, the total number of employed people in Brazil showed an increase of 1.1% compared to the previous quarter, totaling 98.9 million employed Brazilians. Considering the same period last year, this growth was 0.7%, adding 641,000 people to the group of employed workers.The survey conducted by IBGE also highlighted the growth of informality in the Brazilian labor market. The number of informal workers, including those without formal contracts, self-employed workers, and domestic workers, reached 38.7 million people, representing an informality rate of 39.2%. This trend has been observed at other times and deserves attention to understand the challenges faced by workers in this context.In addition, real usual earnings remained stable compared to the previous quarter, staying at R$ 2,921. However, when analyzing the year-on-year growth, there was a significant increase of 6.2% in this indicator. The mass of usual real income, on the other hand, also remained stable compared to the previous quarter but recorded a growth of 7.2% compared to the same period last year.In summary, the data released by IBGE shows an improvement in the Brazilian labor market, with the unemployment rate reaching its lowest level in nine years. However, informality remains a point of concern, and the growth of earnings requires continuous monitoring to ensure a more stable and prosperous environment for the country's workers.