Unemployment in Brazil at 6.9%, lowest rate since 2014
A report released Wednesday (Oct. 9) by the Institute for Applied Economic Research (IPEA) shows improvements in the Brazilian labor market. In it, the labor force and the employed population in Brazil display the highest indicators since 2012, when the current the time series began.
In the second quarter this year, the labor force totaled 109.4 million people, with 101.8 million employed.
For the second quarter, the researchers point out that formal employment also grew—up four percent compared to the second quarter of 2023. A total of 1.7 million new formal jobs were created—an increase of 3.8 percent over the period.
Sectors
Unemployment reached its lowest level since the fourth quarter of 2014, falling to 6.9 percent, the survey found. The long-term unemployment rate also fell (1.5 percentage points), and there was a small reduction in discouragement (those who have given up seeking a job—0.4 percentage points).
The declines are seen as significant across several categories. Except under gender, the reductions in unemployment are said to have contributed to a narrowing of inequalities within each group. Chief among the sectors are economy, transportation, IT, and personal services.
Growth in formal employment was seen in most sectors, with the exception of agriculture, domestic services, and public utilities.
Average income also rose in the second quarter of 2024 compared to the same time span last year, with a real increase of 5.8 percent, ending the quarter at BRL 3,214.
The real wage bill grew by a significant 9.2 percent year-on-year to BRL 322.6 billion, up BRL 27 billion from the first quarter of 2023.
Challenges
Despite the progress, the researchers warn of the need to face up to a few challenges. The stability of underemployment and labor force engagement rates in recent quarters was mentioned as cause for concern.
“We must understand why the number of inactive people remains high—66.7 million out of the workforce. Among them, 3.2 million have given up looking for work—a group that should be a priority for reintegration into the labor market,” the study reads.
The specialists also underscore the need to further investigate the causes of discouragement and to invest in policies to attract these people to productive opportunities.
Another point of concern is the agricultural sector, which recorded its ninth consecutive reduction in the employed population. Furthermore, structural problems continue to impact the labor market, with many workers still stuck in informal jobs, with no access to social and labor protections.
Regional, gender, race, age, and education inequalities, both in terms of opportunities for productive inclusion and average monthly income, remain critical.
