Brazil's unemployment rate declines to 13.2% in August

Brazil's unemployment rate fell to 13.2% in August 2021, compared to 13.7% in July, as the number of employed rose by 1.15mn between the two months. The country had 90.2mn of occupied workers in August, corresponding to 50.9% of the working age population. Brazil saw a surge in the number of informal workers in the eighth month of 2021, amid a growing number of fully vaccinated in the country, and a decline in the real average income.

According to the Brazilian Institute of Geography and Statistics, which conducts the survey, the informality rate – defined as the proportion of workers without a labour contract – rose to 41.1% in August, from 40% in May 2021. In addition, the average real income fell by 10.2% y/y in the eighth month of 2021, amid a fast-growing inflation in the country, as the National Broad Consumer Price Index, the IPCA, rose by 9.68% y/y in August, and accelerated further to 10.25% y/y in September.

Brazil saw a surge in the number of informal workers in the eighth month of 2021

On October 26, Brazil’s ministry of economy declared that the country reported a net gain of 313,902 formal jobs in September, compared to 368,091 formal jobs created in August. 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.

Brazil's unemployment indicator is updated monthly, available from March 2012 to August 2021. The data reached an all-time high of 14.7 % in April 2021 and a record low of 6.2 % in December 2013. Read more.