Brazil’s Job Market Reaches Historic Low in Unemployment

Brazil’s job market achieved a significant milestone in 2024, as reported by the Brazilian Institute of Geography and Statistics (IBGE). The average unemployment rate fell to 6.6%, the lowest since IBGE began tracking this data in 2012.

This marks a substantial improvement from previous years. The number of employed individuals in Brazil reached a record high of 103.3 million, representing 58.6% of the population aged 14 and above.

This increase in employment was accompanied by a rise in average worker income, which grew to 3,225 reais per month, a 3.7% increase from 2023. Despite these positive trends, challenges remain.

The informal sector still accounts for a significant portion of the workforce, with 40.3 million people employed informally. Additionally, the IBGE‘s “underutilization rate,” which measures potential workforce not fully engaged in the labor market, stands at 19 million people.

Brazil’s Job Market Reaches Historic Low in Unemployment. (Photo Internet reproduction)

These figures reflect a strengthening Brazilian economy, with more people finding work and earning higher wages. However, the persistent informal sector and underutilization rate suggest there is still room for improvement in job quality.

It also indicates the need for better labor market participation. The data indicates Brazil‘s economy is on a path of recovery and growth, offering new opportunities for its workforce.

As the country continues to navigate its economic trajectory, addressing remaining challenges will be crucial. This will be key for sustained growth and prosperity in South America’s largest economy.