Commerce, manufacturing, and financial and insurance activities showed sharp contractions.
By October 2023, the national unemployment rate was 9.2%, 0.5pp lower than the 9.7% observed a year ago. This reduction in unemployment is mainly due to an increase in the employment rate and inactivity. However, the seasonally adjusted unemployment rate was 9.9%, which is 0.3pp higher than the 9.6% seen in September. With the above, the average unemployment rate of the last 12 months falls to 10.2%.
In particular, for the month of October, accommodation and food services, social services and real estate activities are the branches that grew the most in employment and that support the increase in employment. In contrast, the branches of commerce, manufacturing industry, and financial and insurance activities showed strong contractions.
Although the unemployment rate continues at 1 digit, the reduction in the number of employees in the branches of commerce and manufacturing raises alarms about the convergence between employment dynamics and the economic slowdown. Additionally, it is important to highlight that unemployment decreases in October, obeying the calendar effect of the last quarter of the year, that is, the one with greatest economic activity. However, the rise in the seasonally adjusted unemployment rate reflects a deterioration in the labor market, which brings with it the delay of the economic slowdown seen so far and which will surely be reflected in the first quarter of 2024.