Brazil Unemployment Eases on Less Restrictions, More Vaccines

(Bloomberg) -- Brazil’s unemployment fell more than expected in July on increased access to immunizations and the relaxing of many Covid-19 restrictions. 

The rate of out-of-work Brazilians decreased to 13.7% in the three months ending in July, from 14.1% previously, the national statistics institute reported on Thursday. The figure was lower than the 13.9% median estimate from analysts in a Bloomberg survey.

In recent months, the labor market has strengthened with authorities removing many of last remaining restrictions on commerce and movement. But the return to work and increased demand on many services -- as more and more Brazilians are vaccinated -- has stoked inflation to its fastest level in five years. The price surge has led policy makers to hike interest rates into restrictive territory, putting a drag on economic growth. About 42% of the nation is fully inoculated, according to Bloomberg’s Vaccine Tracker.

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