Unemployment rate is below 10% in Brazil, lowest level since 2015

The unemployment rate in Brazil dropped to 9.8% in the quarter from March to May, informed this Thursday (30) the IBGE (Brazilian Institute of Geography and Statistics). It is the lowest for that period since 2015, when it was 8.3%.

The result came below financial market estimates. Analysts consulted by the Bloomberg agency projected a rate of 10.2%. In the three immediately preceding months (December to February), the indicator was at 11.2%.

The number of unemployed, in turn, dropped to 10.6 million in the quarter through May, according to the IBGE. The contingent was at around 12 million in the previous three months.

According to official statistics, the unemployed population gathers those who are out of work and continue to look for new vacancies. Those who do not have a job and are not looking for opportunities are not included in the calculation.

The data released by the IBGE are part of the Pnad Contínua (Continuous National Household Sample Survey).

The survey portrays both the formal and informal labor market. That is, they are evaluated from jobs with a formal contract and CNPJ to the popular odd jobs.

After the shock generated by the pandemic, the job market is trying to recover in Brazil. According to Pnad, the number of unemployed reached 15 million in the quarter until May 2021, under the effect of the health crisis.

With the lifting of restrictions and the reopening of the economy, there was a process of returning to work, and unemployment began to decline over the past year.

The reopening of vacancies, however, was marked by a sequence of falls in the average income of workers.

Income has become leaner in a context of informal return to the market, soaring inflation and opening of lower-wage jobs, economists say.