Brazil’s unemployment falls to 9.8% in May

Brazil's unemployment rate fell to 9.8% in May, compared to 10.5% in April, as the number of unemployed fell by 6.3% m/m, standing at 10.6mn. The country recorded 97.5mn occupied workers in May (+1% m/m and +10.6% y/y), corresponding to 56.4% of the working age population.

According to the Brazilian Institute of Geography and Statistics, which conducts the survey, the share of informal workers – those without a labour contract – in the number of occupied workers stood at 40.1% in May. The average real income inched up by 0.65% m/m to BRL 2.613 in May, but it is still 7.2% lower y/y, amid a two-digit inflation in the country. The Broad National Consumer Price Index (IPCA) recorded a 11.7% increase y/y in May 2022, after rising by 12.1% y/y in April.

The country recorded 97.5mn of occupied workers in May

On June 29, Brazil’s ministry of economy declared that the country reported a net gain of 277,018 formal jobs in May, compared to a net gain of 197,443 in the previous month, as the number of hirings stood at 1.96mn, while the number of dismissals was 1.68mn. Notably, the services sector had a net gain of 120,294 formal jobs in the fifth month of 2022. The information was obtained from the General Register of Employees and Unemployed (CAGED), compiled by the government, which includes employees with formal labour contracts in the domestic private sector.

Read more about Brazil’s job market.

Brazil unemployment rate is updated monthly, available from March 2012 to May 2022. The data reached an all-time high of 14.9 % in March 2021 and a record low of 6.3 % in December 2013.