Brazil’s Leading Employment Indicator dropped 0.8% in July, decelerating after three consecutive months of highs, as reported by Fundação Getulio Vargas (FGV).
Despite the slight drop, economic activity should remain heated in the short term with the federal government’s stimulus, said researcher and economist at Fgv Ibre Rodolpho Tobler, in an interview with CNN Brazil this Thursday (4)
“We noticed that the labor market has had a more favorable reaction than expected at the end of the year”, said the economist.
“Despite showing signs of deceleration, the indicator signaled a stronger second semester, so there may still be some short-term evolution in the labor market, because there were stimuli to the economy that should keep it heated in this period”, he added.
The researcher stressed that the slowdown does not indicate that economic activity will decline drastically, but that it will perhaps begin to react at a slower pace than the one it was having.
“What we observe is that the third quarter has reasons for some heating up of the economy, but when we look at the fourth quarter the trend is that there will be a reduction in economic activity”, he pointed out.
Source: CNN Brasil
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