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Brazil's unemployment rate continues to fall

1 Feb 2012 by Jim Fickett.

Many people think that Brazil's economy has received an artificial boost from greatly increasing household credit (Demand growth in Brazil driven partly by a one-off pop in household credit). So one wonders how many households are carrying an unsustainable amount of debt. Debt stress, however, is only likely to become apparent when the employment situation deteriorates at some point. For now that looks to be far off, as the unemployment rate has been in a downtrend for a decade, from 13% in 2002 to 4.7% in December of 2011.

(This graphic is from a Banco Central do Brasil presentation; for raw data sources see Brazil unemployment.)

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