Brazil’s Unemployment Rate Drops to 7.8% in August: PNAD Continuous Survey

In the quarter ending August 2023, Brazil witnessed a decline in the unemployment rate to 7.8%, marking a 0.5 percentage point decrease from the previous quarter (March to May 2023) and a notable 1.1 point drop from the same period in 2022. This represents the lowest unemployment rate since February 2015.

Here are the key highlights:

  • Unemployment Rate: 7.8% (June-July-August 2023), 8.3% (Mar-Apr-May 2023), 8.9% (June-July-August 2022)
  • Underemployment Rate: 17.7% (June-July-August 2023), 18.2% (Mar-Apr-May 2023), 20.5% (June-July-August 2022)
  • Real Average Income: Stable at R$2,947, with a 4.6% increase compared to the previous year
  • Unemployed Population: Decreased by 5.9% (8.4 million) in the quarter and 13.2% (1.3 million) annually, reaching the lowest level since June 2015.
  • Employed Population: Increased by 1.3% (99.7 million) in the quarter and 0.6% (641,000) annually.
  • Informal Employment Rate: 39.1%, with 38.9 million informal workers.
  • Underutilization Rate: 17.7%, the lowest since December 2015.
  • Income Gains: Real habitual income remained stable in the quarter but saw a 4.6% increase annually.
  • Rising Informality: The number of workers without a formal contract increased, while those with a formal contract saw a 3.5% rise annually.

The overall labor market indicators suggest positive trends, with reduced unemployment and increased formal employment, contributing to Brazil’s economic recovery.