05/06/2024 – 9:11
The Leading Employment Indicator (IAEmp) rose 0.7 points from March to April, the fifth consecutive increase, to 80.2 points, the highest level since September 2022, reported the Fundação Getulio Vargas (FGV). In quarterly moving averages, IAEmp also grew 0.7 points.
“IAEmp’s April result maintains the positive trajectory of recent months, accumulating an increase of 5.2 points in the last five months. The improvement in Brazilian economy forecasts for the year 2024 may be influencing businesspeople’s decisions and suggesting a positive scenario for the job market in the first half of the year. Caution is still needed due to the low level of the indicator, returning to the 2022 level, and the recent increase in uncertainty, which could be an obstacle to the continued recovery of the indicator”, assessed Rodolpho Tobler, economist at the Brazilian Institute of Economics at FGV (Ibre/FGV), in an official note.
IAEmp suggests an expectation of job creation in the future, the higher the level, the more satisfactory the result. The indicator is formed by a combination of series extracted from the Industry, Services and Consumer Surveys, all calculated by FGV. The objective is to anticipate the direction of the job market in the country.
In April, four of the seven IAEmp components contributed positively to the result.
The best performances in the month were for the items Industry Business Trends, with an impact of 0.9 points, and Expected Employment in Services, with an impact of 0.5 points.
There were negative impacts from the items Trend of Services Businesses, with -0.5 point, Current Situation of Industry Businesses, with -0.3 point, and Current Situation of Services Businesses, -0.3 point.
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