Unemployment Level Will Return to Pre-Pandemic in 2023, Economists Say

Low expected growth and the cloudy electoral scenario weigh against unemployment rate

São Paulo

Economists project that unemployment in Brazil will return to pre-Covid levels only in 2023, given the expectation of mediocre growth for the country in more recent economic reviews in 2022. According to the IBGE, there were 14.8 million unemployed in May, a rate of 14.6%.

The scenario worsens when observing the underemployed population in the country, which raises the number to 32.9 million.

Despite the recent improvement in the level of employment, the unemployment rate has been affected by greater participation in the labor market – there are, today, more people looking for jobs.

The electoral scenario next year, in addition to the challenges posed by the pandemic itself, should limit growth and curb the expected increase in investment.

The process has been troubled by President Jair Bolsonaro, who is questioning electronic voting machines and attacking the Supreme Court.

IDados economist Bruno Ottoni estimates that if the country grows around 5% this year and 2% next year, it should take until 2023 for the market to return to pre-pandemic levels.

Translated by Kiratiana Freelon

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