Unemployment rate drops to 12.6 percent

unemployment rate
Photo: Joa Souza/Shutterstock

As Brazilian cities roll back Covid restrictions, the country’s unemployment rate fell to 12.6 percent in Q3 2021, from 14.2 percent in Q2. This means that 13.5 million workers remain out of a job in the country. The results were largely in line with market expectations.

The Brazilian Institute of Geography and Statistics (IBGE) highlights that informal jobs made up for 54 percent of the growth in employment. Among the biggest growth categories were employees in the private sector without a formal contract (10.2 percent), which added up to 11.7 million people. 

In the same period, the number of domestic workers rose 9.2 percent to 5.4 million, the highest since the survey began in 2012. If only unregistered workers are taken into account, there was an increase of 10.8 percent — or an extra 396,000 people.

The average monthly wage of employed workers sat at BRL 2,766 (USD 495), down 4 percent from the previous quarter and 11.1 percent from a year ago.