(reading time: 2 mins)

Summing up, the job market in April slightly improved monthly and remains strong. Unemployment rate close to low levels, 5.68%; as the Employed population keeps growing above the Active population. Even so, Employed Population is growing at 2.3%; below moving averages, however Active population is growing at a lower rate, meaning the unemployment rate remains at low levels…     

The INE (Portuguese Statistic Institute) has just released April’s job preliminary data, namely Rate of Unemployment, Under Utilization Rate, Employed Population and Underutilization Population (we were not able to comment yesterday, sorry for any inconvenience).    

The main highlights are the following:

1 – Unemployment rate in April 5.68% (-8bpMoM); compares with 12MMA (12 months moving average): 5.84% and 3MMA: 5.74%;

2 – The Under-Utilization rate (takes in consideration the under-utilization population divided by a broad concept of Active population) went down 3bp MoM to 9.72%; compares with 12MMA: 9.98% and 3MMA: 9.75%;

3 – The Inactive Population went down -171bp YoY vs. 12MMA: -200bp and 3MMA: -195bp (-57bp MoM);

4 – Th Active population went up 1.71%YoY vs. 12MMA: 2.61% and 3MMA 1.83% (+36bp MoM):  

5 – The Employed population went up 2.31%YoY vs. 12MMA +3.23% and 3MMA 2.39% (+43bp MoM).

Our comments: the job market, in April, slightly improved and remains strong. Unemployment rate below 5.7% and Under-utilization rate below 10%; both, below moving averages, continue to outperform. Meanwhile, the Employed population, +2.31%YoY, growing below moving averages, is slowly adjusting, fortunately the Active population is also adjusting growing below 2% and below moving averages, probably a direct result of the new legislation to stay in the country.

All in all, as we mentioned in the past, the slower growth of Active population is offset by a slower growth of Employed population, so the job market remains strong, and the unemployment rate remains close to low levels. Currently, probably the best indicator is the Employed population growth rate        

Source: INE, AS Independent Research