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Brazilian unemployment rate drops slightly from record level

AFP

Brazil’s unemployment rate pulled marginally back from record levels to 14.6 percent in the rolling March to May quarter, according to official figures released on Friday.

Unemployment in Latin America’s largest economy had been at a record 14.7 percent since the January to March quarter.

It amounts to 14.8 million people being out of work, the IBGE statistics institute said.

Compared to the March to May period in 2020, when the rate was 12.9 percent, there are 2.1 million more people unemployed.

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Experts believe the only way to reactivate the economy would be through progress with the country’s coronavirus vaccination program.

Over the past 18 months since the pandemic appeared, more than 550,000 Brazilians have died of Covid-19.

However, it will take time for economic activity to catch up with increased immunizations.

“In a climate of increased uncertainty … business people are postponing investments and formal contracts,” said Paulo Peruchetti, from the Brazilian institute of economics at the Getulio Vargas foundation.

“This level of uncertainty will probably remain high due to financial risks and political turmoil, which should increase in 2022 with a highly polarized presidential election.”

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Far right President Jair Bolsonaro is expected to face fierce competition from leftist former leader Luiz Inacio Lula da Silva.

Peruchetti said the informal sector would be the one driving a recovery in employment. It includes people paid under the table, doing odd jobs, working in the street, and others who like them do not pay taxes. 

The informal sector reached 40 percent of the workforce, or nearly 35 million people, in the March-May quarter.

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International

El Chapo’s son Joaquín Guzmán López pleads guilty to U.S. drug trafficking charges

Joaquín Guzmán López, one of the sons of notorious Mexican drug lord Joaquín “El Chapo” Guzmán, pleaded guilty on Monday to drug trafficking charges in a U.S. court, months after his brother Ovidio reached a similar plea agreement, according to local media reports.

The defendant appeared before a federal court in Chicago early Monday afternoon and changed his previous plea in the case, the Chicago Tribune reported. U.S. authorities accuse him of forming, together with his three brothers, the cartel faction known as “Los Chapitos.”

The group is believed to have continued the operations of El Chapo, who has been serving a life sentence in the United States since 2019.

Guzmán López, 39, was arrested after landing in Texas in a small aircraft alongside cartel co-founder Ismael “El Mayo” Zambada.

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International

Venezuela authorizes return flights as U.S. continues deportations amid rising tensions

The arrival of U.S. aircraft carrying undocumented Venezuelan migrants continued regularly despite rising tensions between Washington and Caracas over President Donald Trump’s military deployment in the Caribbean.

Trump maintains that the deployment is part of an anti-narcotics operation, while Venezuelan President Nicolás Maduro insists the true objective is to remove him from power and seize the nation’s oil resources.

Venezuela’s aviation authority has “received a request from the United States government to resume repatriation flights for Venezuelan migrants from that country to Venezuela,” the Ministry of Transportation said in a statement .

“Under the instructions of President Nicolás Maduro, authorization has been granted for these aircraft to enter our airspace,” it added.

Caracas will permit two Eastern Airlines flights to land on Wednesday and Friday.

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Migration remains one of the Trump administration’s flagship issues. On Monday, the U.S. president held a meeting with his National Security Council to discuss the situation in Venezuela, a day after confirming he had spoken with Maduro by phone, without offering further details.

According to the Venezuelan government, roughly 75 deportation flights have been carried out this year, returning at least 13,956 Venezuelans from the United States.

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International

20,000 rounds stolen from german army after driver leaves cargo unattended

The German army confirmed the theft of a shipment of ammunition that occurred a week ago while it was being transported by a civilian delivery driver, a military spokesperson told AFP, confirming earlier media reports.

According to Der Spiegel and the regional broadcaster MDR, around 20,000 rounds of ammunition were stolen from an unguarded parking lot near Magdeburg, in eastern Germany, while the driver was asleep in a nearby hotel. No information has been released regarding the identity of the suspects, and the military declined to specify the exact type or amount of ammunition taken.

Authorities have also not indicated how the perpetrators knew the cargo would be left unattended.

“The theft was discovered upon delivery at the barracks,” the German army spokesperson said.

A police spokeswoman confirmed to AFP that an investigation has been opened but refused to provide further details “for tactical reasons.”

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Sources close to the German military, cited by Der Spiegel, believe it is unlikely the theft was a coincidence. They suspect the thieves waited for the driver to stop for the night before striking.

Der Spiegel also reported that the Defense Ministry normally requires two drivers for this type of transport to ensure the cargo is constantly monitored. However, in this case only one driver was assigned, meaning the civilian transport company failed to comply with the security protocols.

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