Macro View

(reading time: 2 mins)

Summing up, the job market in July, regained momentum, employed population increased 4%YoY; reaching record figures, while unemployment at 5.79% is close to record lows.

The INE (Portuguese Statistic Institute) has just released July’s job preliminary data, namely Rate of Unemployment, Under Utilization Rate, Employed Population and Underutilization Population.    

The main highlights are the following:

1 – Unemployment rate in July, 5.79%; compares with 12MMA (12 months moving average): 6.33% and 3MMA: 6.03%;

2 – The Under-Utilization rate (takes in consideration the under-utilization population divided by a broad concept of Active population) went down 28bpMoM to 9.96%; compares with 12MMA: 10.69% and 3MMA: 10.24%;

3 – The Inactive Population went down -240bp YoY vs. 12MMA: -86bp and 3MMA: -233bp (+27bpMoM);

4 – Active population went up 3.2%YoY vs. 12MMA: 2.16% and 3MMA 3.11% (flat MoM):  

5 – The Employed population went up 4.0%YoY vs. 12MMA +2.34% and 3MMA 3.57% (+33bp MoM).

Our comments: the job market, in July, reached a new high, Active Population +3.2%YoY to 5 584 000, while Employed population increased 4% to 5 260 000; reducing the unemployment rate to a record low 5.79% (at least, last 15 years). The job market keeps gaining momentum, clearly surprising on the upside.      

Source: INE, AS Independent Research