In Brazil, the jobless rate dropped to 7.8% for the quarter that ended in August 2023.
This marks a decrease of 0.5 percentage points from the prior quarter spanning March to May 2023.
Furthermore, it’s the lowest unemployment rate observed since a 7.5% rate in February 2015.
Compared to last year’s time frame, there’s a reduction of 1.1 percentage points.
As a result, the country now has 8.4 million unemployed individuals. This is the smallest number since a tally of 8.5 million in the second quarter of 2015.
Between the quarters ending in May and August 2023, this number fell by 5.9%.
In an annual comparison, the decrease is even more significant at 13.2%, equating to 1.3 million fewer unemployed persons.
The Brazilian Institute of Geography and Statistics (IBGE) published these findings. The data originates from their ongoing National Continuous Household Sample Survey.
In terms of specifics for August 2023:
- The unemployment rate is currently 7.8%.
- Exactly 8.4 million people are out of work.
- On the flip side, 99.7 million Brazilians are gainfully employed.
- The overall employment level is 57%.
- Meanwhile, 66.8 million people are not in the job market.
- Around 3.6 million individuals are discouraged from seeking work.
- Formal employment includes 37.28 million people.
- In contrast, 13.2 million people work in informal settings.
- Self-employed individuals number 25.4 million.
- Additionally, 5.9 million people work in domestic settings.
- Lastly, the rate of informal labor stands at 39.1%.
Background Brazil’s Unemployment
The decline in unemployment is a positive indicator for Brazil’s economy. Yet, it’s crucial to consider the sectors contributing to this drop.
A surge in formal employment can lead to long-term stability. Conversely, a rise in informal jobs may offer only temporary relief.
Moreover, the current employment level of 57% shows room for improvement. A higher rate would signify better labor market health.
The data on discouraged workers, standing at 3.6 million, suggests that many still find the job market daunting.
Addressing this concern should be a priority to maintain a downward unemployment trend.