The unemployment rate reached 10.5% in the quarter ending in April, better than expectations

Brazil’s unemployment rate continues on a downward trajectory and reached 10.5% in the April quarter, a much better result than had been expected by the market (Refinitiv consensus expected 11%), according to data from the Continuing PNAD (National Survey by Continuing Household Sample) released This Tuesday (31st).

It is the lowest rate for this quarter since 2015 (when it was at 8.1%) and a decrease of 0.7 percentage points compared to the previous quarter (November to January) and 4.3 percentage points to the annual comparison (February to April) 2021, which is the period in which the country has been struggling from the height of the second wave of Covid-19).

The number of employed people (96.5 million) is the highest in the historical series that started in 2012, and it grew by 1.1% compared to the November-January quarter (1.1 million more people) and 10,3% in the same quarter. from the previous year (9 million people work in one year).

The number of unemployed decreased by 5.8% in the quarterly comparison (699 thousand people) and 25.3% in the annual comparison (3.8 million fewer unemployed), according to the Brazilian Institute of Geography and Statistics (IBGE). Despite the good news, 11.3 million Brazilians are still unable to find a job and their usual real income is down 7.9% year over year.

The level of employment (the proportion of workers in the working-age population) was estimated at 55.8%, with a quarterly increase of 0.5 percentage points and an annual increase of 4.8 percentage points (when it was 51.1%).

Continuing Item Indicators for the month of April 2022:

• vacancy rate: 10.5% (versus 11.2% in the November-January quarter and 14.8% in the February-April 2021 quarter)
• Unemployed population: 11.3 million people (-669 thousand in the quarter versus -3.8 million in the annual comparison)
• working population: 96.5 million people, the highest number in the historical series starting in 2012 (+1.1 million in a quarter and +9 million in a year)
• profession level (Percentage of workers in the working-age population): 55.8% (+0.5 percentage points in a quarter and +4.8 percentage points in a year)
• Usual real income: R$2,569 (Stability in the quarterly comparison and -7.9% in the annual comparison)

With or without a formal contract?

The number of formal contract workers in the private sector (excluding domestic workers) reached 35.2 million people, an increase of 2.0% compared to the previous quarter (690 thousand people) and 11.6% in the annual comparison (adding 3.7 million people). ).

The number of domestic workers remained stable in the quarterly comparison (5.8 million people) and increased by 22.7% in the yearly comparison (an additional million people).

The number of undocumented employees in the private sector was the highest in the historical series (12.5 million people), showing stability compared to the previous quarter and an increase of 20.8% in one year (2.2 million people more).

The number of self-employed people (25.5 million people) also remained stable in the quarterly comparison, but increased by 7.2% in the annual comparison (1.7 million additional people).

The number of employers remained stable compared to the previous quarter (4.1 million people) and grew by 11.2% compared to the same quarter of the previous year (414 thousand additional people).

Finally, the number of employees in the public sector (11.5 million people) was consistent in both comparisons.

working population:

• Employees with an official contract in the private sector (Excluding domestic workers): 35.2 million people (+690 thousand in the quarterly comparison and +3.7 million in the annual comparison)
• local workers: 5.8 million people (stable q/q & +1m y/y)
• Employees who do not have a formal contract in the private sector: 12.5 million people (stable in the quarterly comparison and +2 million in the annual comparison)
• self employed: 25.5 million people (stable and +1.7 million)
• The bosses: 4.1 million people (stable and +414 thousand)
• Public sector workers: 11 million people (stabilization in the two bases of comparison)
• Unofficial rate: 40.1% of the employed population (38.7 million informal workers) compared to 40.4% in the previous quarter and 39.3% a year ago)

Informal character and low wages

As a result, the informality rate was 40.1% of the working population (38.7 million informal workers), a decrease of 0.3 percentage points in the quarterly comparison (the rate was 40.4% between November and January) but an increase of 0.8 percentage points per year (39.3%). between February and April 2021).

The usual real income was R$2,569 in the quarter ending in April, which is stable compared to the previous quarter and a decrease of 7.9% compared to the same quarter of the previous year. Usual real income (R$242.9 billion) grew compared to the previous quarter and remained flat in the annual comparison.

Although there was an increase in the formalities, no expansion was observed in the average real income of formal labor in the private sector. In addition, there has been a decline in public sector income,” says Adriana Berengoy, coordinator of household sample surveys at the International Institute for Quality in the Environment (IBGE).

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