In the third quarter of 2023, Brazil witnessed 39 million of its workers in informal employment, making up 39.1% of its employed population.
This data from the Brazilian stats agency IBGE indicates a slight decrease in informal employment from the second quarter of the year, where it stood at 39.2%.
These figures nearly match the historical peak of the second quarter of 2022, when 40 million, or 39.3% of the employed, were in informal jobs.
The lowest incidence of informal employment was during the pandemic in the second quarter of 2020.
At that time, the informal sector accounted for 30.7% of the workforce, totaling 36.5 million people.
This fluctuation highlights the impact of economic and social changes on employment patterns.
Regionally, Maranhão leads with the highest informal employment rate at 57.3%. Following closely are Pará at 57.1%, Amazonas at 55%, and Piauí at 55%.
On the other end, Santa Catarina reports the lowest rate of informal work at 26.8%. These statistics shed light on the varied economic landscapes across Brazilian states.
They also underscore the challenges and dynamics within Brazil’s labor market, reflecting broader trends in the national economy.
Background
Comparatively, Brazil’s informal employment rate is higher than in many other countries.
This reflects unique socio-economic factors, including labor market flexibility and the prevalence of small-scale enterprises.
The high rate of informality often correlates with challenges in social security and labor rights.
Brazil’s regional variation in informal employment rates mirrors the country’s diverse economic conditions.
States like Maranhão and Pará, with higher informality, often have fewer industrial or formal job opportunities.
In contrast, states like Santa Catarina benefit from more diversified economies with greater formal employment.