Leading Employment Indicator drops 1.4 points in April, says FGV-IBRE

The Leading Indicator of Employment (IAEmp) fell 1.4 points in April, to 75.0 points, after months in a row of increases. This is what the Brazilian Institute of Economics (FGV-IBRE) reveals.
Economist at the company GWX Investimento, Ciro Almeida explains this job reduction movement.

“The job reduction movement was already expected after the first quarter. This is a movement that happens every year, because at the end of the year and even in the first months of the year, there is a potential for hiring, mainly temporary workers, ”he says.

Highlights of IAEmp

The drop in the Leading Employment Indicator in April was influenced by 4 of the 7 components of the indicator. With regard to the components that contributed positively, albeit timidly, the Forecast Employment and Service Business Trend indicators stand out, with an identical variation of 0.2 point.

According to economist Guidi Nunes, financial director of CBRASE – Cooperativa Brasileira de Serviços Empresariais, if the economy does not experience an economic recession, the current outlook, according to the Employment Background Indicator, is optimistic.

“For the coming months, the signs are for stability, if the economy does not enter into an economic recession. So for the time being, the scenario is a bit encouraging, encouraging to keep the job market stable,” he points out.

Contribution in points to the variation in the IAEmp margin, by component:

  • Services Survey – Expected Employment 0.2
  • Services Survey – Business Trend 0.2
  • Consumer Survey – Future Local Employment 0.0
  • Services Survey – Current Business Situation -0.3
  • Industry Survey – Current Business Situation -0.4
  • Industry Survey – Expected Employment -0.1
  • Industry Survey – Business Trend -1.0

By Brasil 61

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