Brazil Sees Unexpected Drop in Unemployment to 7.6%

In January, Brazil’s jobless rate was 7.6%, steady from the previous quarter but up from December’s 7.4%, the IBGE’s latest survey reveals.

This rate, down 0.7 percentage points from early 2023, was lower than analysts’ 7.8% prediction.

There were 8.3 million people seeking jobs, unchanged quarterly but down 7.8% year-on-year.

The workforce hit 100.6 million, growing 0.4% over the past quarter and 2.0% over the past year.

Worker Earnings and Total Wages Increase

Workers’ average earnings reached R$3,078 in the latest quarter, up 1.6% since the last quarter and 3.8% over the year, after inflation adjustments.

This quarter’s wage rise was led by the public administration and domestic service sectors.

Adriana Beringuy of the IBGE noted that the public sector mainly fueled this increase. In the private sector, informal and unregistered employees saw wage gains.

Manufacturing, commerce, and transport sectors report wage hikes, boosting quarterly wage pool by 2.1% and annual to R$305.1 billion.

This growth underlines Brazil’s economic resilience and the improving job market, signaling a positive shift for workers and the broader economy.