The average unemployment rate should increase to 17.8% this year, projects FGV | save

Last year, the average unemployment rate was 11.9%.

Ibre also expects the average mass of income to drop 8.6%, on average, in 2020 in relation to what was determined in 2019. With this reduction, the average effective income will close this year at R $ 2,206 per month, below R $ 2,413 observed in the previous year.

The mass of effective income from work is expected to decrease by approximately 14.4% in 2020, which will push both the decrease in average income and the expected reduction of 6.6% in the employed population.

Therefore, according to Ibre, the salary bill will end this year 3.2% below its lowest level since the beginning of the historical series, in 2012.

“In the labor market, the scenario is one of great loss of jobs and income. The composition of the losses will also be difficult to homogeneous and will depend on the public policies adopted,” said the institute in its Macro Bulletin.

The projected low performance for the labor market is in the context of the economic recession expected this year due to the effects caused by the coronavirus. Ibre projects that the Gross Domestic Product (GDP) will decrease 3.4%.

With the deterioration of the labor market, the government announced a provisional measure that will reduce working hours and wages by up to 70%.

• See the Q&A about the MP that authorizes workload reduction.