São Paulo Records Lowest Unemployment Rate in 12 Years

São Paulo recorded its lowest annual unemployment rate in 12 years, reaching 6.2% in 2024, according to IBGE data released by Fundação Seade.

This figure outperformed both the national average of 6.6% and the Southeast region’s 6.4%. It signals significant labor market improvements in Brazil’s largest state.

The unemployment rate in São Paulo dropped by 1.3 percentage points compared to 2023 and by 2.9 points since 2022. Governor Tarcísio de Freitas credited the decline to policies focused on job creation and income growth.

He emphasized efforts to attract businesses and support the productive sector. In the fourth quarter of 2024, unemployment in São Paulo fell further to 5.9%, the lowest quarterly rate since IBGE began tracking in 2012.

The state also led Brazil in formal employment, with 11.666 million private-sector workers holding signed contracts, a 2.1% increase from the previous year. Formal jobs accounted for 81.2% of private-sector employment, well above the national average of 73.4%.

The total employed population, including formal, informal, domestic, and self-employed workers, reached 25.052 million by year-end. This represents a quarterly increase of 1.2% and an annual rise of 2.2%.

São Paulo’s Labor Market Recovery

Meanwhile, the number of unemployed individuals dropped to 1.577 million, down 12.6% from the same period in 2023. Worker incomes in São Paulo also saw gains, with average monthly earnings reaching R$4,102 in late 2024.

This figure is higher than both the Southeast regional average of R$3,738 and the national average of R$3,315. Despite progress, informal employment remains a challenge for São Paulo, affecting 31.1% of its workforce compared to Brazil’s national average of 39%.

However, this marks one of the lowest rates of informality among Brazilian states. It also highlights São Paulo’s strong labor market recovery since its pandemic peak unemployment rate of 14.4% in 2021.

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