Brazil’s unemployment rate fell as expected in May, a sign of the prevailing strength of Latin America’s largest economy even as it faces double-digit borrowing costs.
(Bloomberg) — Brazil’s unemployment rate fell as expected in May, a sign of the prevailing strength of Latin America’s largest economy even as it faces double-digit borrowing costs.
Official data released Friday showed the national unemployment rate dropped to 8.3% from a month earlier, in line with the median estimate from analysts surveyed by Bloomberg. Results are based on a moving 3-month period of data collection. Some 8.9 million people were out of work, the national statistics agency said.
The job market in Brazil is surprisingly tight despite being pinched by sagging demand and a benchmark interest rate of 13.75%, a six-year high. For months, President Luiz Inacio Lula da Silva has demanded that the central bank cut rates to further boost economic growth, but policymakers remain concerned about price pressures.
After its latest rate decision meeting, the central bank indicated that it may begin monetary easing as soon as August.
Read more: Brazil Central Bank Signals Rate Cut as Lula Piles Pressure
–With assistance from Giovanna Serafim and Rafael Gayol.
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