In an unexpected yet welcome economic development, Brazil has left market expectations far behind by creating an astonishing 180,395 formal jobs in January. This figure was shared by the labour ministry and represents a figure double the number initially forecasted by economists, who had predicted a much more modest sum of 90,000 jobs.
The labour market expansion echoes the broader strength of the Brazilian economy, bolstered by a significant surge in the average salary for new hires, which stood at 2,118 reais ($424.30) in January. The increase is notable at 3.38% more than that of December, reflecting the country’s robust economic momentum.
In terms of the overall job metrics, Brazil witnessed its total number of formal jobs climb to an impressive 45.7 million in January, showing a 0.39% expansion from the month before. These numbers, however, don’t account for the roughly 40 million informal workers that exist within Brazil’s economy, who are not included in the formal job calculation.
This encouraging job creation news is complemented by significant growth in Brazil’s retail sector witnessed in the same month. This trend underscores the resilience and dynamism of Brazil’s consumer markets. Additionally, the services sector in the country has also posted performance figures that have exceeded expectations, signaling healthy business conditions across the country’s diverse economic landscape.
At the time of the report, the exchange rate stood at $1 to 4.9917 reais, a key variable that plays into the broader economic picture, particularly impacting the competitiveness of Brazil’s exports and the affordability of imports.
Further Data From Brazil On March 28th
More data on jobs that will likely have further impact on the fundamentals of BRL will be coming in the next two weeks. For the timebeing, these are some of the key marks:
- Unemployment Rate – 7.6%
- GDP – 2.1% (Y/E Oct 23)
- Industrial Production – 1.5% YoY Jan 24
- Foreign Trade – $5.45bn Feb 24 (Apr 4th Next print)
The pronounced rise in formal employment is a bright spot for the Brazilian economy, bringing both increased opportunities for the workforce and underlining confidence for investors looking to tap into the South American giant’s potential amidst global economic uncertainties.