IBGE: employment with a formal contract in the private sector rose 4.4%

Continuous PNAD data refer to the third quarter of this year

Published in 30/11/2021 - 15:59 By Cristina Indio do Brasil - Repórter da Agência Brasil - Rio de Janeiro

The number of employees with a formal contract in the private sector, not counting domestic workers, reached the number of 33.5 million people in the third quarter of 2021. This total represents an increase of 4.4%, or more 1, 4 million people compared to the previous period and 8.6% or more 2.7 million people compared to 2020. Data from the Continuous National Household Sample Survey (PNAD Continuous) were released today (30 ) by the Brazilian Institute of Geography and Statistics (IBGE).

The number of unregistered employees in the private sector also increased. In the third quarter of the year, there were 11.7 million people, which represents an increase of 10.2% or 1.1 million people. The comparison is with the previous quarter. In relation to the same quarter of 2020, the increase is 23.1% or 2.2 million people.


The survey also showed that the composite rate of underutilization, which fell by 2.0 percentage points (pp) was 26.5%, compared to the quarter from April to June 2021, when it registered 28.5% and 3.9 pp compared to to the same quarter of 2020. At that time it was 30.4%.

The underutilized population totaled 30.7 million people and reduced by 5.7%. This is equivalent to less 1.9 million people, compared to the previous quarter, which had 32.6 million people and 8.9 pp or less 3.0 million people compared to the same quarter of 2020 (33, 7 million underutilized people).

“The rate of underutilization of force has its worst estimate in the northeast region of the country with 16.4% and the southern region with the lowest 15.6%”, said the coordinator of Work and Income at IBGE, Adriana Beringuy.

In the characteristic, the underutilized, for the most part, are in the 25 to 39 age group. “It has the largest share reaching the last quarter at 34%. Although this age group makes up the main proportion of underutilization, it shows a downward trend”, he commented.

The underemployed population due to insufficient hours worked reached 7.8 million people, which is stable in relation to the previous period between April and June, when there were 7.7 million people. Compared to the previous year, when there were 6.3 million people, it was an increase.


The depressed population reached 5.1 million people and, as a result, dropped 6.5% or less 360 thousand people, compared to the previous quarter and 12.4% compared to the same period in 2020 (5.9 million people ).

The percentage of discouraged people in the workforce, which was 4.6%, decreased by 0.4 percentage point compared to the previous quarter (5.0%) and by 1.0 pp compared to the same quarter of 2020 (5.6 %).


Although Brazil has an employed population of 93.0 million people, the share that contributes to Social Security is 58.5 million people. According to the coordinator, this means that 62.9% of the employed population contributes to social security institutes, but the percentage has been falling. “Although the occupation has been increasing, the employed persons who have this type of contribution have been falling, because the expansion of this occupation, a relevant part of it, comes from informal workers, who in general do not have this contribution to social security”, he said.


The Continuous PNAD released today is the first in the new series prepared by the IBGE, based on the reweighting of projections. Changing the way the survey was collected was necessary during the covid-19 pandemic. With the social isolation measures in March 2020, the collection began to be done remotely, exceptionally by telephone.

"The new reweighting seeks to mitigate possible availability biases in population groups, intensified by the drop in the rate of use of interviews", noted Adriana.


According to IBGE, the Continuous PNAD is the main instrument for monitoring the workforce in the country. “The survey sample per quarter in Brazil corresponds to 211,000 households surveyed. About two thousand interviewers work in the research, in 26 states and the Federal District, integrated to the collection network of more than 500 IBGE agencies”, informed the Institute.

The collection of survey information by telephone has been carried out since March 17, 2020. The identity of the interviewer can be confirmed on the website Respondando ao IBGE or via the Call Center (0800 721 8181), checking the interviewer's enrollment, ID or CPF, data that may be requested by the informant.

Text translated using artificial intelligence.

Edition: Maria Claudia

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