Brazil: Unemployment in first quarter falls to 7.9%

The unemployment rate in Brazil in the first quarter of 2024 stood at 7.9 percent. The result represents an increase of 0.5 percentage points compared to the quarter ending in December 2023 (7.4%). Despite the rise, the index for the first quarter is the lowest for the period since 2014, when it reached 7.2 percent.

The data come from the National Household Sample Survey (Pnad), released on Tuesday (Apr. 30) in Rio de Janeiro by the government´s statistics agency IBGE. The average unemployment rate for January, February, and March was lower than the 8.8 percent reported in the first quarter of 2023.

According to the IBGE, the country recorded 8.6 million unemployed individuals in the first quarter, marking an increase of 542,000 (+6.7%) compared to the end of last year. However, when compared to the same period in 2023, there were 808,000 fewer individuals (-8.6%). The IBGE defines unemployed individuals as those actively seeking employment.

In the first quarter of 2024, the number of employed individuals totaled 100.2 million, marking a decrease of 782,000 (-0.8%) compared to the last quarter of 2023, but reflecting an increase of 2.4 million (+2.4%) compared to the same period in 2023.

The IBGE survey encompasses all forms of occupation, including both formal and informal employment, temporary positions, and self-employment, among others.

Seasonality

According to the survey's coordinator, Adriana Beringuy, the rise in the unemployment rate is a common occurrence at the start of the year.

"The initial quarter of each year typically witnesses declines in employment rates. This trend is partly attributed to the termination of temporary positions," she explains.

Among these temporary positions, she highlights those within the public sector. "A significant portion came from public administration, particularly in the education sector. Around the year-end, these workers are often laid off. However, as the new school year begins, there is a tendency for this workforce to be rehired," she notes.

The researcher is optimistic about a sustained decline in unemployment nationwide. “The seasonal fluctuations observed this quarter do not negate the overall downward trajectory in the unemployment rate witnessed over the past two years,” Beringuy emphasizes.