Unemployment drops to 9.1% in July, but the number of informal workers is a record

Unemployment drops to 9.1% in July, but the number of informal workers is a record

Brazil’s unemployment rate fell to 9.1% in the quarter ending in July, according to data released Wednesday (31) by the Brazilian Institute of Geography and Statistics (IBGE). It is the lowest index in the series since the quarter ending in December 2015, when it was also 9.1%.

However, the job shortfall still reached 9.9 million people, the lowest level since the quarter ended January 2016.

The data is part of the Continuous National Household Sample Survey (Pnad). In the previous survey, referring to the quarter ending in June, the unemployment rate was 9.3%, to 10.1 million people.

The July rate represents a 1.4 percentage point decrease from the previous quarter that ended in April.

The rate, the lowest in the historical series recorded in 2014, was 6.5%.

Occupancy (the proportion of workers in the working-age population) was 57%, down 1.1 percentage points from the quarter ending in April. Compared to the same quarter of 2021, the reduction is even larger: 4.1 percentage points.

“It is possible to observe the maintenance of the trend of growth in the profession and the significant decrease in the unemployment rate,” explains the coordinator of household sample surveys, Adriana Beringuy.

The number of employed reached 98.7 million workers, which is a record number in the historical series that began in 2012.

Highlights of the main search

  • The unemployment decreased to 9.1%which is the lowest index in the series since the quarter ending in December 2015
  • . number unemployed retreated to 9.9 million of people. from the public
  • Period busy people Record breaking: 98.7 million
  • population lack of use hue to 24.3 million of people. from the public
  • People of the workforce hue to 64.7 million of people. from the public
  • population with disappointment (who gave up looking for work) fell 4.2 million
  • modified Unofficial It was 39.8% of the working population
  • . number informal workers arrived in 39.3 million
  • . number Employees without formal contract It was the largest in the series: 13.1 million
  • . number Employees with a business card rose sign for 35.8 million
  • workers for Arithmetic receipt 25.9 million of people. from the public
  • . number local workers stayed in 5.8 million of people. from the public
  • . number The bosses It was 4.3 million of people. from the public
  • real income The usual stayed in 2693 Brazilian Real – Despite the increase compared to the previous quarter, it still accumulates a decrease in the year

IBGE: Unemployment drops to 9.1% in the quarter; The country has 9.9 million unemployed

Labor market instability

The working population was 98.7 million people, the highest in the survey’s historical series, in 2012.

However, the IBGE data shows the fragility of this growth: The number of informal workers was the highest in the chain, at 39.3 million, 559 thousand more than the quarter ended April. The informal activity rate reached 39.8% of the working population.

This informal population includes workers without a formal contract, employers and the self-employed without a CNPJ, as well as auxiliary family workers.

Commerce and public administration autumn pull

According to the International Institute of Universities and Electricity, two activities affected the drop in the unemployment rate in July. In trade and repair of cars and motorcycles, there was an increase of 692 thousand people in the labor market (3.7%) compared to the previous quarter.

Public administration, defense, social security, education, human health and social services saw an increase of 648,000 people (3.9%).

“These two activities were, in fact, remarkable, but it is noteworthy that no economic activity group showed a loss in the occupation. In other words, all sectors added people to the labor market,” says the research coordinator by family sample, Adriana Berengoy.

For the quarter ending July 2021, only the Agriculture, Livestock, Forestry, Fishing and Aquaculture sector showed growth in the working population.

“No Wallet” breaks the record

The number of employees without a formal contract reached 13.1 million, the highest number since the beginning of the historical series, in 2012. Growth was 4.8% per quarter (more than 601 thousand people) and 19.8% (2.2 million people) per year.

The number of workers with official contracts in the private sector (excluding domestic workers) also increased: 1.6% compared to the previous quarter, reaching 35.8 million.

Domestic workers numbered 5.9 million, up 4.4% from the previous quarter and 14.1% (718,000 additional people) for the year.

The number of self-employed people reached 25.9 million, an increase of 1.3% (326 thousand people) compared to the previous quarter. And in comparison with the same period last year, the increase was 3.5% (more than 872 thousand people).

The number of employers grew by 3.9% in the quarter (162 thousand people more), reaching 4.3 million people, and 16.2% (597 thousand people) for the year.

The number of employees in the public sector (12 million) grew 4.7% in the quarter and 5.1% on the year.

Lowest use in six years

The labor market underutilization rate was 20.9% in the first quarter — the lowest level since the second quarter of 2016, when it also reached 20.9%.

Compared to the quarter ending in April, the number of unused workers in the labor market decreased by 1.8 million. With respect to the same quarter last year, this unit was reduced by 7.7 million workers.

However, underemployment affects 27.1 million workers. This unit consists of:

  • 9.9 million unemployed: People who are not employed but have searched for jobs in the last 30 days;
  • 6.5 million unemployed: people who work less than 40 hours a week, but would like to work more;
  • 10.7 million people in potential workforce: Who can work, but not work, a group that includes 4.2 million disappointed (who gave up looking for work) and others 6.5 million people can workbut they don’t exist for a reason, like women leaving their jobs to take care of their children.

The panic has continued on a downward trend since the first quarter of 2021 when it reached 5.9 million Brazilians. Compared to the quarter ending in April, the number of workers in this case decreased by 221,000 workers. Compared to the same quarter last year, there are a million less frustrated people in the country.

The usual real income a worker would receive was estimated at R$2,693 in the quarter ending in July – 2.9% higher than the previous quarter, but 2.9% lower than in the same period in 2021, when the country was still reeling from the effects of the pandemic.

This was the third consecutive increase. Compared to June, the increase was 1%.

According to Rodolfo Margato, an economist at XP, the index remains about 6% below the levels observed before the pandemic. “Thus, we believe that real returns will continue in a moderate uptrend going forward,” he says.

The increase was driven by the income of employers (6.1% or more of R$369), military and civil servants (3.8% or more of R$176) and self-employed (3% or more of R$63). ).

“The last time I saw significant growth was exactly two years ago, in the quarter to July 2020,” says Adriana Beringuy.

Usual real income (combination of average income with the working population) amounted to R$260.7 billion, an increase of 5.3% compared to the quarter ending in April and 6.1% in the annual comparison.

Compared to June, the increase was 1.5%, 8.7% higher than the December 2021 level and practically the same level recorded in the months immediately preceding the pandemic.

On Monday (29), the Labor Department reported that the country created 218,900 formal jobs in July – down from July last year, when 306,500 formal jobs were created.

However, the data cannot be compared with the unemployment figures released this Wednesday by the IBGE. This is because the data in the general register of employees and the unemployed consider workers who have a formal contract, that is, they do not include informal workers.

Fortified figures are collected from companies and cover the private sector with a formal contract, while Pnad data are obtained through household surveys and also cover the informal sector of the economy.

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