Brazil: Unemployment, informal work affect more black and brown people
In Brazil, black and brown people face higher unemployment rates than white people, earn lower wages, and are more likely to work in the informal sector. These findings come from a survey by the government´s statistics agency IBGE.
The data show that in the fourth quarter of 2024, the unemployment rate among white Brazilians stood at 4.9 percent, below the national average of 6.2 percent. In contrast, black (7.5%) and brown (7%) populations faced higher-than-average unemployment rates.
According to survey coordinator Adriana Beringuy, this inequality is a structural characteristic of the Brazilian labor market and “not limited to this quarter.”
The IBGE survey examined labor market trends among individuals aged 14 and older, encompassing all types of employment, such as formal and informal jobs, temporary work, and self-employment. Data were gathered from 211,000 households across all states and the Federal District.
Informality
Inequality based on color is also evident when analyzing the rate of informal employment, which refers to the proportion of workers lacking guaranteed rights such as vacation, Social Security contributions, and the year-end bonus.
In the fourth quarter of 2024, Brazil's overall informality rate stood at 38.6 percent, with 41.9 percent for black individuals and 43.5 percent for brown individuals. The rate among white people was below the national average at 32.6 percent.
IBGE highlights that, between the third and fourth quarters of 2024, the informality rate decreased nationwide (from 38.8% to 38.6%) and among white individuals (from 33.5% to 32.6%). However, it increased among brown individuals (from 43.2% to 43.5%) and black individuals (from 41.8% to 41.9%).
In the last quarter of 2024, the average monthly income in the country reached BRL 3,215. This indicates a significant disparity, with white workers earning above the national average at BRL 4,153 per month, while black workers earned BRL 2,403 and brown workers earned BRL 2,485.
Gender
The IBGE survey also underscores gender inequality in the labor market. In the last quarter of 2024, the unemployment rate for men was 5.1 percent, while for women it was higher, at 7.6 percent.
The income disparity between men and women is also evident. In the last quarter of 2024, men had an average monthly income of BRL 3,540, while women earned BRL 2,783.
