Average Income Reaches Nearly 10-Year Low, IBGE Says – 11/30/2021 – Market

a Average income from work It fell again in Brazil and reached the lowest value for the third quarter in the historical series of IBGE (Brazilian Institute of Geography and Statistics). records continuous item The (National Continuous Household Sample Survey) started in 2012.

In the third quarter, the usual real income of employees was estimated at R$2,459, according to data released on Tuesday (30) by the institute. Regarding the third quarter of last year (R$2766), the decline was 11.1%, which is the largest in the series.

Prior to this Tuesday’s release, the lowest value was recorded for the July-September period in 2012. At that time, the income was R$2,462.

The indentation coincides with back informal workers To the market, IBGE points out. This segment usually has a lower income, which helps push the average to a lower level.

In the initial phase of the epidemic, informal people were hit hard by restrictions on economic and social activities. Now how Developments in vaccination against Covid-19 Reducing measures to help the economy and return to the market.

a high inflation It also affects the decline in average income. This is because IBGE takes into account the behavior of prices when calculating the index in a country.

In the analysis of the four standard calendar quarters, the lowest mark in the series was recorded between January and March 2012. At that time, the value reached R$2,438, slightly lower than the most recent data.

The institute’s work and income coordinator, Adriana, explained, “The level of occupation is increasing by increasing the introduction of informal workers into the market, and those with lower incomes. This leads to a lower average. In addition, we have a persistent inflation problem.” Burnjoy.

In the third quarter of 2021, the number of people engaged in some types of work was estimated at 93 million people in Brazil. The unit represents an increase of 4% (3.6 million more) compared to the immediate prior quarter and an increase of 11.4% (9.5 million more) compared to the same quarter in 2020.

This movement helped reduce the unemployment rate, for 12.6%.

According to IBGE, of the 3.6 million additional people in the working population, compared to the second quarter of this year, about 54% (1.9 million) worked without a formal contract or CNPJ. In other words, more than half of the new vacancies were taken up by informality.

“With the economic recovery and emergency aid ending, this growth is expected to happen [dos informais]. “In general, they are people who have less education and who have more difficulty accessing the formal market,” says Sergio Firpo, professor of economics at Inspire.

According to the International Institute of Statistics, the rate of informality was 40.6% of the working population in the third quarter. There are 37.7 million workers without a formal contract or CNPJ.

The highest percentage was recorded in the third quarter of 2019: 40.9%. With the pandemic, the index fell to 36.5% in the second quarter of 2020.

The return of informal workers to the market occurs at a time when the pockets of workers are affected by the emergence of the IPCA (National Broad Consumer Price Index), the country’s official inflation indicator.

In the 12-month period through October, the most recent period for which data is available, the index has had 10.67% shot. It is the largest cumulative increase since January 2016 (10.71%).