Brazil labour market improves but doubts will persist

Significance Unemployment fell to 7.4% at the end of 2023. Despite a fall in the participation rate, the positive figures also show that over 100 million people are currently employed, representing a recovery of the labour market. However, challenges persist, including high rates of informality and the deterioration in labour conditions. Impacts Many people have left the labour market, reflected in a declining participation rate which will prove difficult to reverse. Stronger economic growth will be needed to keep unemployment low but is likely to prove elusive. Informality will continue to limit prospects for more sustained income increases.