The Institute of Applied Economic Research (Ipea) has released a new Labor Market Bulletin revealing significant improvements in Brazil’s job market.
Based on data from the Brazilian Institute of Geography and Statistics (IBGE), the study highlights record-breaking employment levels since the Continuous PNAD series began in 2012.
In the second quarter of 2024, the workforce reached 109.4 million people, with 101.8 million employed. This trend continued into the third quarter, setting a new record of 102.5 million employed individuals.
Formal employment grew by 4.0% compared to the same period in 2023. The New Caged system recorded 1.7 million new formal jobs, a 3.8% increase.
The unemployment rate fell to 6.9%, its lowest since late 2014. Long-term unemployment and discouragement rates also decreased.
Ipea researchers noted significant declines in unemployment across various categories, reducing inequalities within groups. The transportation, IT, and personal services sectors showed strong growth.
Labor Market Developments
Most sectors experienced increased formal employment, except agriculture, domestic services, and public utilities.
Average income grew by 5.8% in real terms, reaching R$3,214 ($642.80). The real wage bill increased by 9.2% year-over-year, totaling R$322.6 billion ($64.52 billion).
Despite these positive developments, challenges remain. Researchers expressed concern over the stability of underemployment rates and labor force participation.
They emphasized the need to understand why 66.7 million people remain inactive, including 3.2 million who have given up job searching.
The agricultural sector recorded its ninth consecutive reduction in employed population. Structural problems persist, with many workers still in informal jobs without social and labor protections.
Regional, gender, race, age, and educational inequalities continue to affect productive inclusion opportunities and average monthly income.
While the Brazilian labor market shows significant improvements, addressing these challenges is crucial for sustained and inclusive growth.
Policymakers and researchers must focus on reintegrating discouraged workers and tackling persistent workforce inequalities.
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