Brazil’s leading employment indicator in May shows continued recovery – FGV

RIO DE JANEIRO, BRAZIL – Brazil’s Antecedent Indicator of Employment showed continued recovery in the labor market in May, although the Getulio Vargas Foundation (FGV) on Friday alerted to risks to this movement.

The indicator, which anticipates the direction of the labor market in Brazil, rose 4.7 points in May, reaching 83.4 points.

“The improvement in expectations for the labor market has been influenced by the easing of restrictive measures and the advance of the vaccination program,” explained FGV Ibre economist Rodolpho Tobler in a note.

“The scenario for the coming months seems to be that this recovery will continue, but still gradually and with some risks, particularly of new waves of the pandemic,” he warned.

The data also show that, of the indicator’s 7 components, 6 contributed positively to the month’s result.

The main contribution came from the Current Situation of Services indicator, 2.2 points, or a 47% increase in the aggregate indicator. In May, only the Industry Business Tendency indicator contributed negatively to the result.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error