Now that the market’s fascinated dream with the regime of Brazil’s new president Michel Temer is quickly turning into a nightmare, following two immediate resignations of his closest ministers over the ongoing Carwash corruption scandal, including ironically that of the country’s anti-corruption minister, Fabiano Silveira, attention is gradually returning to what is truly the cause of Brazil’s woes: an unprecedented economic depression, although only for the people – certainly not for the political elite.

And unfortunately, Brazil’s depression – which is what we first defined it here all the way back in December 2014 – is getting worse with every passing month. The latest economic news metely confirm this. Here is Goldman’s take on today’s disastrous unemployment numbers.

The labor market continues to deteriorate: The unemployment rate continues to climb and is now at 11.2% with the ranks of the unemployed reached 11.4 million (up from 8.0 mn a year ago).

Employment declined 1.7% yoy in the 3-month period ending in April, while the active labor force grew 1.8%. Average real wages declined 3.3% yoy. We expect labor market conditions to deteriorate further given the expectation that the economy will remain weak for the remainder of 2016.
The national unemployment rate printed at a higher than expected 11.2% in the 3-month period ending in April, up from 10.9% in March, 8.0% a year ago, and 7.1% two years ago. In seasonally adjusted terms the unemployment rate climbed to 10.8% in April from 10.4% in March and 7.6% a year ago.
Formal salaried employment in the private sector shrank 4.3% yoy, and employment in the informal sector dropped 0.6% yoy. On the other hand, self-employment grew 4.9% (a reflection of increasingly limited salaried employment opportunities). By sector of economic activity, industrial employment shrank by a large 11.8% yoy.
Average real wages declined 3.3% yoy in April, with average real wages of the self-employed and those working in the informal sector down 5.1% yoy and 1.4% yoy, respectively.