Unemployment Statistics in Brazil - Essay Example

If the number of unemployed people in the country is too high and at the same time these people stay longer without jobs, the government strains in terms of shelling out money to cater for their livelihood. For instance, the Brazilian economy was slugged in the year 2001 following a 58% increment in the unemployment rate from the previous year. It took another two years for the Brazilian economy to regain its stability (Taylor, 2006).

Another relationship between the economy of Brazil and unemployment rates is in terms of spending power. High rates of unemployment lead to reduced rates of spending since the unemployed persons decide to save their money and drastically cut their expenditures which in turn affects the economy. On the other hand, employed persons also reduce their rate of spending due to the insecurity of their work and increased taxes by the government. If this trend continues, the government becomes unable to obtain or collect enough taxes to sustain the economy and this leads to economic instability in the country; as witnessed in the years 2001 up to the year 2004. In short, the government can only sustain its economy if it obtains enough taxes and revenues from public spending. It is this public spending that unemployment targets to curb the economy and make it unstable. Most businesses in the country cut prices to sell their products which sometimes leads them out of business thus causing even more unemployment (Taylor, 2006).

Lastly, the Brazilian economy is related to its unemployment rates in terms of recession. In situations where the country experiences increased levels of unemployment, some vital economic factors such as health costs, income, healthcare quality, living standards, and poverty are affected. These economic determinants in the end affect the stability, performance, and growth of the country’s economy (Taylor, 2006).

Trendssawn in unemployment data sets in Brazil

The last time the unemployment rate was reported in Brazil was in September 2011 and the standings were at 6%. This is seen as a lower figure compared to an average standing of 10% between 2001 and 2010. The period between 2001 and 2004 was the most significant in the history of the country where the rates of unemployment elevate-toll 12% higher than the overall average standings. This saw the Brazilian economy destabilize and record downward growth trends. In august 2003, the unemployment rate was seen to have a historic high of about 13.2%Interventionson by the international community, private sect, and outsourcing were the main key turning points that have led to a reduction of the trend of unemployment till today where it is projected to hit 5.5% by the end of this year (Taylor, 2006). Read More