The number of applicants for unemployment benefits in 2021 dropped to the lowest level since 2006, per data from Brazil’s Labor Ministry. Roughly 6 million people applied for unemployment insurance in 2021, a 10.3-percent drop from the previous year.
The government believes that multiple factors contributed to the decrease, including the distributions of emergency aid benefits during the pandemic and programs that allowed companies to reduce workers’ hours and wages if they chose not to terminate their contracts.
Meanwhile, the high levels of informal employment may be a significant driver. Four in every ten Brazilian workers are estimated to be in the informal sector as of 2022.
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