The Signals from the Labor Market

BRAZIL ECONOMICS - Report 25 Nov 2013 by Marcelo Gazzano, Cristina Pinotti and Affonso Pastore
Since the middle of 2012, the seasonally adjusted unemployment rate has been holding steady near historic minimum levels. However, this is not the result of hiring from a growing labor force flow, which if true would indicate progressive tightening of the job market. In reality what has been happening is a decline in the velocity of absorption, both of the labor force and the occupied population. In other words, despite the stable jobless rate, the labor market has been getting softer. The unemployment rate in the six largest metropolitan regions has been fluctuating around 5.4% since July ...

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