• Wed. May 18th, 2022

Huge Unemployment claims rise again in January

ByVik Singh

Feb 21, 2022

The number of unemployment insurance claims rose again earlier this year 529826 applications were registered in January an increase of 10 compared to the same month of 2021 when there were 463834 requests and also to December.

Yeartodate however there was a drop of 102 From January to December 2021 608 million requests were registered compared to 678 million in 2020 But the record of requests was registered in May 2020 with 960308 the highest mark in the historical series at the beginning of the coronavirus pandemic

Another index that anticipates the direction of the job market started 2022 with a drop for the third consecutive month going in January to the lowest level in almost a year and a half indicating difficulty in recovery according to FGV Vargas.

Brazils Employment Background Indicator dropped 53 points in January to 765 points returning to the lowest level since August 2020 748 points

The sharpest worsening at the beginning of 2022 stems from the combination of the economic slowdown that began in the fourth quarter with the outbreak of Ômicron and Influenza which mainly affects the service sector the largest employer making it difficult in the short term to see a change in the course of the indicator

Brazil opened 2730597 formal jobs between January and December 2021 according to the Ministry of Labor and Social Securitys Caged General Registry of Employed and Unemployed The unemployment rate dropped to 116 in the quarter ended in November the lowest level since the beginning of 2020 according to IBGE data.

However the real income of workers reached the lowest of the historical series This week December unemployment will be released with data from the Pnad National Household Sample Survey closing the year 2021.

According to the Ministry of Labor and Social Security the explanation for the growth in unemployment insurance in January is because more people were laid off in December Historically this number always rises this month as it is when the temporary hires for the holiday season are closed This increase is part of the natural seasonality of economic dynamics says the folder in a note.

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