Brasilia: Brazil’s unemployment rate continued its downward trajectory in the August–October period, reaching its lowest level since the IBGE statistics agency adopted current measurement methods in 2012.

According to official data released Friday, unemployment fell to 5.4 percent, down from 6.2 percent during the same period last year. Despite the positive trend, informal employment remains significant, with 37.8 percent of the workforce engaged in informal jobs.

The sustained decline in joblessness comes as welcome news for President Luiz Inacio Lula da Silva, whose government has been working to cushion the economic effects of a 40 percent tariff imposed by the United States on numerous Brazilian exports. The tariffs, enacted in August by US President Donald Trump, were introduced in response to the trial of former president Jair Bolsonaro, who is serving a 27-year prison sentence related to efforts to block Lula from assuming office after the 2022 elections.

Earlier this month, the United States eased some of the pressure by exempting key agricultural exports—including beef and coffee—from the tariffs following improved diplomatic engagement between the two countries.