Minister says unemployment in Brazil will fall soon

Photo: Orlando Neto / Shutterstock.com

Estimated reading time: 3 Minutes

The unemployment rate may drop to 8% before the end of the year with the economic recovery. This is what Minister EconomiePaulo Guedes, during the opening of the Congress of the Brazilian Association of Bars and Restaurants (Abrasel) in Brasilia, last Tuesday (9).

The rate is currently 9.3%, in the quarter ending in June, the lowest level in a seven-year period, according to the Brazilian Institute of Geography and Statistics (IBGE).

Guedes announced that before the end of the year, the unemployment rate will rise to 8%. In the minister’s words, Brazil will end the year with “the lowest unemployment rate we’ve seen in the past 10 or 15 years.”

In addition to Brazil’s unemployment rate, Guedes talked about the country’s economic situation

In Guedes’ assessment, the country is entering a long investment cycle. The minister said that the Brazilian economy is in a better position than that of developed countries and other Latin American countries, which are respectively entering a recession and experiencing difficulties.

In addition, Guedes linked the recovery of the labor market, where the number of unemployed people in the country has reached just over 10 million, to an improvement in the business environment, while reducing bureaucracy.

“Brazil is going through a long growth cycle. We have created a business environment that already has contracts worth R$890 billion. This is ten times what the minister invests,” said the minister.

According to Geddes, the economic team wants to expand debt renegotiation programs with the union. He said the Ministry of Economy already has a tax transaction form.

The minister did not give details about the expansion, but did mention that the trade, services and events sector needs to have access to the same debt settlement options available to other sectors affected by the COVID-19 pandemic.

In addition, Guedes spoke about trade liberalization, the plan to join the Organization for Economic Cooperation and Development (OECD) that has already been approved and about European companies that began to show interest in investing in Brazil after the start of the war between Russia and Ukraine.

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Photo: Orlando Neto / Shutterstock.com