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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

Erin brings strong winds and storm surge despite weakening offshore

Hurricane Erin weakened to a Category 2 storm on Tuesday but continues to pose a threat to parts of the U.S. East Coast with potentially dangerous flooding, according to meteorologists.

Although the hurricane’s eye is expected to remain offshore, experts are concerned about Erin’s size, as strong winds extend hundreds of kilometers beyond the storm’s center.

In its 18:00 GMT bulletin, the U.S. National Hurricane Center (NHC) lifted tropical storm warnings for the Bahamasand Turks and Caicos Islands, but kept them in effect for parts of North Carolina.

Erin was located several hundred kilometers southeast of North Carolina and was moving northwestward.

“This means there is a risk of potentially life-threatening flooding of 60 to 120 centimeters above ground level,” said NHC Director Michael Brennan.

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He also warned of the possibility of destructive waves, combined with storm surge, that could cause severe damage to beaches and coastal areas, making roads impassable.

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International

Three U.S. Warships deploy near Venezuela to combat drug trafficking

Three U.S. naval vessels are moving toward the coasts of Venezuela, according to international media reports on Tuesday, after White House spokesperson Karoline Leavitt confirmed that President Donald Trump is ready to combat and curb international drug trafficking.

Reports indicate that the ships will reach Venezuelan waters within the next 36 hours as part of a recent U.S. deployment aimed at countering international narcotics operations.

The announcement coincides with Leavitt’s statement that Trump is prepared to “use the full extent of his power” to halt drug flows into the United States. The naval deployment involves approximately 4,000 military personnel.

“The President has been clear and consistent. He is ready to use every element of U.S. power to prevent drugs from flooding our country and to bring those responsible to justice. The Maduro regime is not the legitimate government of Venezuela—it is a narco-terror cartel,” the spokesperson said during a press conference.

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International

Cuban authorities free salvadoran convicted in 1997 hotel bombing

Salvadoran national Otto René Rodríguez Llerena was released after serving a 30-year prison sentence for his involvement in a terrorist attack at a hotel in Cuba in 1997, the Cuban Ministry of Foreign Affairs reported.

During his trial, Rodríguez Llerena admitted to placing an explosive device at the Meliá Cohiba Hotel under the orders of anti-Castro exile leaders. He was arrested the following year when he returned to Havana with another load of explosives that failed to detonate.

“The Cuban government reiterates its commitment to combating terrorism, respecting human rights, and the need for the international community to hold accountable those who promote such acts,” the statement read.

He was released on August 15 and is the second Salvadoran to complete his sentence. In December of last year, another Salvadoran, Ernesto Cruz León, was released after planting bombs at tourist centers, one of which killed an Italian tourist identified as Fabio Di Celmo.

A third Salvadoran, Francisco Chávez Abarca, also received a 30-year sentence from Cuban courts in 2010 after being extradited from Venezuela through Interpol for actions against Cuba.

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Rodríguez Llerena had requested conditional release in 2016, arguing that his actions had not caused any direct fatalities, but no further information was released about his situation until now.

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