Brazil has seen its unemployment rate drop to the lowest level since February 2015. The rate of workers looking for a job dropped to 7.8 percent in the three months through August. This figure represents a decline of half a percentage point in the joblessness rate from the March-May period, highlighting positive momentum for the country’s labor market.
The data comes from the Brazilian Institute of Geography and Statistics’ continuous household sample survey, a critical instrument for tracking labor trends in Brazil.
Average real habitual income has jumped by 5.5 percent annually, and Brazil’s wage mass reached a new record at BRL 288.9 billion (USD 57.5 billion) — even discounting for inflation. According to a note from economist André Perfeito, the numbers are yet another economic gauge showing that the Brazilian economy should continue to grow at higher-than-expected levels.
In its latest inflation report, the Central Bank revised its forecast for Brazil’s gross domestic product growth in 2023, from 2 percent in June to 2.9 percent now. But the bank expects consumer prices to have risen by 5 percent by the end of the year, above its target. The median forecast made by market agents surveyed weekly by the bank sits at 2.92 percent (having gone up in each of the past five weeks).
Additionally, the underemployed population — that is, individuals who would work more hours if they had the opportunity to — is down by 17.3 percent annually.
There were, however, a few less-than-stellar points in Brazil’s latest unemployment report. The number of domestic workers has risen by 2.9 percent — more than any other category — which may indicate that while more jobs are available, they might not be good jobs.
The growth in the number of domestic workers reveals the structural fragility of employment in Brazil. These jobs tend to be informal, which often prevents workers from earning a fixed monthly income.
The number of informal private sector employees also grew, reaching 13.2 million, signifying a 2.1 percent increase for the quarter and stability in annual comparison.
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