The delay of Brazilian economy can cost millions of jobs, as between December and February the unemployment rate jumped to 10.2%. The deepening political and economic crisis, as well as the low commodity prices, continue to put under pressure the business in the South American country. The level of unemployment jumped seriously during the last years and reached the level of 2009, when the country was suffering from deep recession. Only an year ago, the unemployment rate in Brazil was 7.4%. During the same period wages decreased by nearly 4% amid high inflation.
The bad news for the labor market come a day after the lower house of the Brazilian Congress voted for the impeachment of the President Dilma Rousseff, because of accusations that she covered up the budget deficit to win a second term in 2014. Rousseff might removed from office in May, when the Senate will vote on impeachment..
Currently, 10 million Brazilians are unemployed, which is 3 million more than an year earlier. The largest South American economy continues to sink into an even deeper recession. The economic problems, along with large-scale corruption scandal around oil giant Petrobras, causing mass protests across Brazil only 100 days before the Summer Olympics in Rio de Janeiro.
In 2015, Brazil’s economy shrank by 3.8%. The central bank predicts that this year GDP will fall by additional 3.5%.