Unemployment affects 29.8% of Brazil’s youths, says IBGE

RIO DE JANEIRO, BRAZIL – The unemployment rate among 18- to 24-year-olds stood at 29.8% in late 2020. There was an increase of 6 percentage points compared to 2019. This is the highest annual rate since official records began in 2012.

The data were released on Wednesday, March 10th, by IBGE (Brazilian Institute of Geography and Statistics).

The segment, like all the others, has been affected by the covid-19 pandemic. The first cases of the disease in Brazil were recorded in February 2020. In March, the number of infections and deaths escalated and states introduced social isolation measures.

The lack of experience results in young people suffering the most from the decrease in the number of jobs in the labor market. In the general population, the unemployment rate stands at 13.9%.

The highest unemployment rate by age group is among the 14 to 17 year-old population (42,7%). A youth in this age group works under specific conditions. He or she may work as an apprentice, for example. Among people aged 25 to 39, the rate stands at 13.9%.

In all other age groups, the unemployment percentage is lower than the overall average. In the 40 to 59 age group, the rate stands at 9%. Among people over 60, it is 5%.

Inequality

Unemployment remains above average among women (16.4%). Among men, the rate stands at 11.9%.

The IBGE also reported that unemployment among black people stands at 17.2%, above the national average. This group is the most prevalent in the poverty and extreme poverty brackets. Blacks are also more likely to live in inadequate housing.

The unemployment rate for those who declared themselves white was below the national average: 11.5%.

Unemployment per state

The average rate of unemployment in 2020 set records in 20 states, in line with the national average.

The highest percentages were recorded in Northeastern States and the lowest in the South.

The highest percentages were found in:

Bahia: 19.8%;
Alagoas: 18.6%; and
Sergipe: 18.4%.

The lowest rates were observed in:

Santa Catarina: 6.1%;
Rio Grande do Sul: 9.1%; and
Paraná: 9.4%.

Within one year, the employed population shrunk by 7.3 million, reaching its lowest number in the annual series (86.1 million).

As a result, for the first time, less than half of the working-age population was employed in the country. In 2020, occupation level stood at 49.4%.

In 15 states, including all Northeastern states, the occupation level fell below 50%. In Alagoas, only 35.9% of the working-age population was occupied. Rio is also on this list, where only 45.4% were employed.

Mato Grosso was the state recording the highest occupation level (58.7%).

According to the IBGE, this drop in occupation was widespread among all workers. The average informality rate also retreated, from 41.1% in 2019 to 38.7% last year (totaling 39.9 million people).

“The drop in informality is not related to more formal workers in the market. It is related to informal workers losing their occupation over the year. With fewer informal workers in the occupied population, the informality rate decreases,” explains research analyst Adriana Beringuy.

Schooling level

Unemployment is experienced by 23.7% of people who have not completed high school.

For the group of people with an incomplete high school education, the rate stands at 16.9%, more than double the rate for those with a complete high school education (6.9%).

Average income

The real average income for all jobs, typically received each month, was estimated at R$2,507 in 2020. This is a reduction of 4.2% compared to the immediately preceding quarter (R$2,616), and a 2.8% increase from the 4th quarter in 2019 (R$2,240). The reason: the injection of funds into the economy through the emergency aid.

Source: IBGE