Brazil’s Unemployment Rate Hits Record Low of 6.4%

In a remarkable turn for Brazil’s economy, the third quarter of 2024 saw a significant drop in unemployment rates. The Brazilian Institute of Geography and Statistics (IBGE) reported a decrease to 6.4%, down from 6.9% in the previous quarter.

This figure marks the lowest unemployment rate for a third quarter in the historical series. The job market’s positive trajectory began in late 2022 and gained momentum throughout 2023.

Adriana Beringuy, coordinator of IBGE‘s household sample surveys, noted that this improvement is not isolated but part of a broader economic upswing.

The number of unemployed individuals fell to 7 million, the lowest since January 2015. Industry and commerce emerged as the primary drivers of job creation.

Of the 1.199 million new jobs in the third quarter, the industrial sector contributed 418,000 positions (34.9%), while commerce added 291,000 (24.3%). Together, these sectors accounted for nearly 60% of new employment opportunities.

The industrial sector stood out for creating formal jobs, while commerce saw growth in both formal and informal positions. This diversity in job types has sustained the increasing workforce.

In addition, the total number of employed individuals reached a record 103.029 million, representing a 1.2% increase from the previous quarter.

Brazil’s Labor Market

Despite these positive trends, average worker income saw a slight decrease of 0.4% compared to the second quarter, settling at R$ 3,227 ($576.25).

However, this change falls within the survey’s margin of error. Compared to the same period in 2023, there was a 3.7% increase in average income.

The total wage bill reached R$ 327.743 billion ($58.525 billion) in the third quarter, showing a 0.8% increase from the previous quarter.

This figure represents a 7.2% rise compared to the same period in 2023, injecting an additional R$ 21.952 billion ($3.920 billion) into the economy.

These figures reflect a robust job market, with various sectors retaining workers and some significantly increasing their workforce.

The data suggests a balanced growth across formal and informal sectors, contributing to the overall economic stability of Brazil.