Brazil Unemployment Rate

Brazil’s unemployment rate averaged 6.4% in the third quarter of 2024, below expectations of 6.5%, and dropping from 6.9% in the second quarter to mark the lowest unemployment rate since the record low of 6.2% from the December-quarter of 2013. The data extended the trend of a strengthening labor market, strengthening the case for tighter monetary policy by the Brazilian central bank this year and raising uncertainty on the policy outlook mandated by the new monetary policy committee to assume in 2025, which is expected to be more dovish. The unemployed population fell by 541 thousand people from the previous quarter to 7 million individuals, while net employment rose by 1.2 million people to 103 million, a new record high.