Brazil's unemployment rate did not show any sign of improvement in past two months. The unemployment rate was increased by 7.6% in August and September. However, it is expected to remain steady in October as workforce in the economy is assumed to be increased.
"We forecast 8.3% in 2016, and would be surprised if the unemployment rate does not top 9.5% by end-2016. The rising unemployment rate should ultimately help cool wage growth to 5.0% this year and 3.3% next year, compared with 10.1% in 2014. While this would help moderate inflation expectations, it would also likely be a strong drag on private consumption and growth", says Societe Generale in a research note.
