Brazil’s unemployment rate fell for a fourth straight month in July, underscoring the resilience of Latin America’s largest economy in the face of headwinds, including double-digit borrowing costs.
“The national unemployment rate declined to 7.9% from the previous month,” according to official figures.
The national statistics agency said that “8.5 million individuals were unemployed.”
The strength of the labor market helped push the Brazilian economy well above analysts’ most pessimistic expectations at the start of the year.
High borrowing costs and months of above-target inflation reduced consumer spending and weighed on growth. Even so, gross domestic product (GDP) is expected to grow by up to 3% in 2023.
