The Leading Employment Indicator (IAEmp) worsened for the fourth consecutive month, falling 1.4 points in February to 75.1 points, the lowest level since August 2020 (74.8 points). In quarterly moving averages, the indicator also dropped, this time by 2.6 points, to 77.8 points.
The data were released today (8) by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV).
“IAEmp fell again in February, following the negative trend of recent months. The latest results suggest that the recovery of the labor market should be slower than in 2021. The difficult macroeconomic environment and potential risks of increased global uncertainty do not allow for a change in the indicator’s trajectory in the short term”, he said, in a note, the economist at Ibre/FGV, Rodolpho Tobler.
IAEmp highlights
In the month of February, all components of the IAEmp contributed negatively to the result, except for the indicator that measures the Current Business Situation in the Services sector, which contributed 0.5 points.
According to Ibre/FGV, the main negative highlight was the Current Situation of Business in Industry indicator, which reduced the variation of the IAEmp by 1.0 point in the month. In addition, the indicators that measure the Business Trend in the next six months and the hiring intentions in the next three months (Expected Employment), both in the Services sector, contributed -0.3 and -0.3 point, respectively, to the indicator variation.
