US Markets

Brazil unemployment likely higher than statistics show, official tells Folha

Credit: REUTERS/SERGIO MORAES

Brazil's rise in unemployment does not reflect the true reality, as people who have lost jobs have been unable to register due to coronavirus measures, a senior Economy Ministry official told a newspaper in an interview published on Monday.

RIO DE JANEIRO, July 27 (Reuters) - Brazil's rise in unemployment does not reflect the true reality, as people who have lost jobs have been unable to register due to coronavirus measures, a senior Economy Ministry official told a newspaper in an interview published on Monday.

Speaking with Folha de S.Paulo, Economic Policy Secretary Adolfo Sachsida said the methodology used by the IBGE statistics agency to measure unemployment was not accurate, which likely meant it was undercounting the number of people out of work.

"Unemployment has already increased, the data do not show this, to be quite frank," Folha quoted Sachsida as saying. "We have to be ready to address this problem that will hit Brazilian society hard. In September, unemployment rates will jump a lot."

Brazil's unemployment rate in the three months to May hit a two-year high of 12.9%. Official figures for June, to be released later this week, are expected to show that has risen further.

(Reporting by Gabriel Stargardter; Editing by Steve Orlofsky)

((Gabriel.Stargardter@thomsonreuters.com; +55 21998116099; Reuters Messaging: gabriel.stargardter.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More