One way to understand how economic initiatives improve the country’s financial market is to know the paths that measures can open up. Examples of this are the construction of a good public and the application of economic policies.
The case of Brazil
After a health crisis like Covid-19, Brazil has gone through many difficult moments. There are still many issues to be understood and improved. However, one of the first economic measures applied after the crisis was the reduction of unemployment.
Brazil recently reduced the population’s unemployment rate to 9.8%, after a long period of bad results in this regard. According to economists, the unemployment rate reached 10.24% of the population. But what made that percentage a reality?
Government economic measures
During the pandemic and until today, some emergency programs were created in Brazil, such as the anniversary loot of the FGTS (service time guarantee fund) and the anticipation of the 13th salary. These are two benefits guaranteed for registered workers. In addition, there were also some rate reductions.
These economic measures have helped the population affected by Covid-19 not to be left in extreme precariousness, despite not being accessible to everyone.
Among the sectors that suffered most from this mass of unemployed, culture, retail and food, among others, can be highlighted. That is because no high demands for these sectors means low demand for employed people as well.
An interesting fact in this context was the micro-entrepreneurs in these sectors, who were able to circumvent the commercial shortage by working occasionally. Even so, demand was inevitably disrupted during the pandemic.
The post-pandemic context
Although the pandemic is not over yet, the economic recovery has already influenced the improvement of Brazilian lives.
Jobs are gradually being restored with the return of cultural events, tourism activities and a more rotating economy. One advantage that the pandemic brought was that many people specialized themselves in other sectors, obtaining even more work options to face this new reality.
According to economists, the rise of formal contracts is happening. In fact, there are still many self-employed workers living on their own initiative, which in any case also drives the economy. However, there are still around 2.8 million people out of the labor market, most of them women and elderly people.
Risks and solutions
Despite the reduction in the unemployment rate, this does not mean that the situation is resolved.
After all, the majority of the Brazilian population is working for lower wages and without guarantee of permanence. This happens because of the economic instability that persists, so that the labor market remains unstable and without stability prediction.
In addition, inflation is also an important factor that can make the economy change in a short time. Controlling inflation by raising or lowering interest rates is a measure that has been widely used by governments around the world in the current crisis.
Therefore, Brazil is a country where economic measures have been taken since a certain point in the pandemic and this movement has already shown results. This is quite evident in the analysis of unemployment, the heating of the economy and interest rates.
For all this, it is possible to observe that identifying problems and applying emergency economic measures are governmental postures that can help a country to improve in times of crisis.