Quotes from Societe Generale Cross Asset Research:
-While we estimate a sharp 0.5pp rise in the Brazil's unemployment rate in January to 4.8% (expecting both employment and the labour force to shrink 0.4% yoy), the seasonally adjusted unemployment rate will likely remain unchanged at 5.1%.
-Looking ahead, the rise in the unemployment rate will eventually ease pressure on wages at some point, helping the economy on the inflation front. However, given the rigidities of the labour market and that of the nominal wages, that stage will not be reached anytime soon.
