BRASILIA, (Reuters) – More than 2 million Brazilians are set to lose unemployment benefits by June, data obtained by Reuters show, threatening to erode support for embattled President Dilma Rousseff among her core working class supporters when she needs them most.
The expiration of benefits could fuel frustration and feed a growing wave of protests against Brazil’s left-leaning government just as some wavering Congressmen throw their weight behind impeachment proceedings against Rousseff that began last week.
More than 1 million Brazilians have participated in street demonstrations this month. Among the reasons for discontent is a corruption scandal at state oil company Petrobras that has curbed investment in Latin America’s largest economy amid recession.
Economists expect the downturn, the worst in a generation, to linger through the rest of the year, driving the unemployment rate to more than 10 percent from the current 9 percent. . The number of jobless people losing unemployment benefits may become a more important source of discontent.
Data provided by the Labor Ministry showed an average of 492,000 benefits a month running out between February and June, stripping many families of a crucial source of income.
