The Institute for Applied Economic Research (Ipea) reports a 3.1% increase in the average income of Brazilian workers from 2022 to 2023.
This finding, released on Friday, draws from the Continuous National Household Sample Survey.
December 2023 saw the average income reach R$3,100 ($620), marking a 0.7% rise from November and 3.9% from December 2022. January 2024’s estimate further climbed to R$3,118.
For the first time post-pandemic, Q2 2023 average income outpaced the same 2019 period by 0.6%. By Q4 2023, it exceeded Q4 2019’s figures by 2.1%.
Habitual income, as Ipea defines it, is regular monthly earnings from work, excluding irregular bonuses or deductions.
Income gains were most notable in the North (4.1%) and Northeast (4%), particularly among 40 to 59-year-olds (4.1%) and those with secondary education (3.2%).
Declines were observed in workers with primary education only. Lower growth affected Southern and Midwestern residents over 60, men, and household heads.
Women’s incomes grew more than men’s across all 2023 quarters, a reversal from past trends. The fourth quarter showed women’s incomes up by 4.2% versus men’s 2.5%.
The last quarter of 2023 saw informal private sector employees leading with a 6.9% income increase.
Self-employed individuals saw a modest 0.3% rise year-on-year. Public sector and formally employed individuals experienced gains of 3.9% and 2.1%, respectively.
Sector-wise, transportation and construction incomes fell by 1.7% and 3.8%, respectively.
Conversely, manufacturing, commerce, and public administration workers enjoyed the largest raises, with agriculture also seeing a 0.9% recovery after a previous decline.
This income growth reflects a broad economic shift, highlighting disparities among regions, demographics, and sectors, underscoring the evolving nature of Brazil’s labor market.