For months, real wages in Brazil were shrinking, even as the job market recovered from the hit of the Covid pandemic. But recent figures now show a reversal in this trend, with August data close to last year’s levels (at least in nominal terms).
Whether this improvement can be sustained is an open question, particularly given the more pessimistic outlook for the economy in 2023.
Per Brazil’s latest unemployment figures, the rate of people out of a job dropped to the lowest level in seven years in the rolling quarter through August, to 8.9 percent. At the same time,…