The unemployment rate in Brazil was 13.9% in the fourth quarter of 2020, falling 0.7 percentage points (p.p.) in relation to the quarter between July and September  2020 (14.6%) and increasing 3.0 p.p. against the same quarter of 2019 (11.0%). The annual average rate changed from 11.9% in 2019 to 13.5% in 2020, the highest one in the time series of the survey.

Compared with the previous quarter, the unemployment rate dropped in five Federation Units, remaining stable in the others. The biggest drops were in Roraima (4.2 p. p.) and Maranhão (2.5 p. p.). The highest unemployment rates were in Alagoas and Bahia (20.0% in both cases), Rio de Janeiro (19.4%) and Pernambuco (19.0%) and the lowest ones were in Santa Catarina (5.3%), Rio Grande do Sul (8.4%), Mato Grosso do Sul (9.3%) and Paraná (9.8%), the only ones under 10.0%.

The unemployment rate by sex was 11.9% for men and 16.4% for women in the fourth quarter of 2020. On the other hand, the unemployment rate by color or race remained under the national average for white persons (11.5%) and above the national average for black (17.2%) and brown persons (15.8%).

The unemployment rate for persons with incomplete secondary education (23.7%) was higher than that reported by other schooling levels. The rate was 16.9% for those with incomplete higher education, more than twice that reported for those who completed higher education (6.9%).

Among the annual average unemployment rates, the highest ones were reported in Bahia (19.8%), Alagoas (18.6%) and Sergipe (18.4%) and the lowest ones in Santa Catarina (6.1%), Rio Grande do Sul (9.1%), Paraná (9.4%) and Mato Grosso (9.7%).

In the fourth quarter of 2020, the composite underutilization rate of the workforce – percentage of unemployed persons, time-related underemployed persons or persons in the potential workforce in relation to the extended workforce – was 28.7%. Piauí (46.7%) registered the highest rate, followed by Alagoas (46.6%), Maranhão (44.7%) and Bahia (44.6%), all of them above 44%. The lowest rates were recorded in Santa Catarina (10.8%), Mato Grosso (17.5%), Rio Grande do Sul (18.7%) and Paraná (19.3%).

The annual average underutilization rate for Brazil stayed at 28.1%. Among the Federation Units, the highest rates were posted in Piauí (46.4%), Alagoas (45.1%) and Maranhão (44.9%) and the lowest ones in Santa Catarina (11.8%), Mato Grosso (17.7%), Paraná (18.9%) and Rio Grande do Sul (19.0%), the only ones under 20.0%.

The number of discouraged persons in the fourth quarter of 2020 was of 5.8 million persons. The highest figure was in Bahia (813 thousand discouraged persons or 14.0% of the national contingent).

The percentage of discouraged persons against the population in the workforce or discouraged was 5.5% in the fourth quarter of 2020. Maranhão (20.7%) and Alagoas (18.4%) registered the highest percentages, Mato Grosso (1.4%), Santa Catarina the Federal District (both with 1.5%), the lowest ones.

The percentage of persons employed with a formal contract was 75.0% of those employed in the private sector. The highest percentages were in Santa Catarina (87.9%), Paraná (85.3%), Rio Grande do Sul (83.9%) and Rio de Janeiro (81.1%), and the lowest ones, in Maranhão (48.5%), Pará (51.4%) and Piauí (52.0%).

The percentage of the employed population in Brazil working as self-employed was 27.0%. The highest percentages were recorded in Amapá (36.7%), Maranhão (34.3%) and Amazonas (34.2%) and the lowest ones, in the Federal District (20.0%), São Paulo (23.2%) and Alagoas (23.8%).

The informality rate for Brazil was 39.5% of the employed population. The highest rates were reported in Maranhão (60.3%,) Pará (59.6%) and Piauí (59.1%) and the lowest ones, in Santa Catarina (27.8%), Federal District (28.5%) and São Paulo (30.1%).

The annual average informality rate for Brazil stayed at 38.7% of the employed population. The highest annual average rates were in Pará (59.6%), Maranhão (59.0%) and Amazonas (57.3%) and the lowest, in Santa Catarina (26.8%), Federal District (28.2%) and São Paulo (29.6%). Unemployment rates retreated in five FUs in Q4 2020.

Unemployment rates retreated in five FUs in Q4 2020

Compared with the previous quarter, five Federation Units retreated their unemployment rates: Roraima (-4.2 p. p.), Maranhão (-2.5 p. p.), Rio Grande do Sul (-1.9 p. p.), Santa Catarina (-1.3 p. p.) and Minas Gerais (-1.1 p. p.), whereas the other 22 FUs remained stable.

Compared with the same quarter of 2019, 19 Federation Units increased their rates and the others remained stable. The biggest increases were reported in Alagoas (6.4 p. p.), Rio de Janeiro (5.6 p. p.) and Pernambuco (5.0 p. p.).

PI has the highest underutilization rate (46.7%) and SC, the lowest one (10.8%)

In the fourth quarter of 2020, the compound underutilization rate of the workforce – percentage of unemployed persons, time-related underemployed persons or persons in the potential workforce in relation to the extended workforce – was 28.7%. Piauí (46.7%) recorded the highest rate, followed by Alagoas (46.6%), Maranhão (44.7%) and Bahia (44.6%). The lowest rates were in Santa Catarina (10.8%), Mato Grosso (17.5%), Rio Grande do Sul (18.7%) and Paraná (19.3%), the only Federation Units under 20%.

AP has the highest proportion of self-employed persons (36.7%) and DF, the lowest one (20.0%)

The percentage of self-employed persons in Brazil was of 27.0% in the fourth quarter of 2020. The highest percentages were reported in the North (32.3%) and Northeast (31.0%). The Federation Units with the highest percentages were Amapá (36.7%), Maranhão (34.3%) and Amazonas (34.2%) and the lowest ones, the Federal District (20.0%), São Paulo (23.2%), Alagoas (23.8%) and Mato Grosso do Sul (23.9%), the only FUs with percentages under 25%.

Lowest percentage of workers with a formal contract is in MA (48.5%) and the highest, in SC (87.9%)

In the fourth quarter of 2020, 75.0% of those employed in the private sector had a formal contract. The Northeast (59.6%) and North (58.2%) regions registered the lowest rates. Among domestic workers, 26.1% had a formal contract.

Among the Federation Units, the highest percentages of workers with a formal contract in the private sector were in Santa Catarina (87.9%), Paraná (85.3%) and Rio Grande do Sul (83.9%) and the lowest ones, in Maranhão (48.5%), Pará (51.4%) and Piauí (52.0%).

Average earnings fall in Southeast and Northeast against the previous quarter

In the fourth quarter of 2020, the usual real average earnings from all jobs of persons aged 14 and over, employed in the week of reference, with income from work, was estimated at R$2,507. This figure reduced -4.2% over the immediately previous quarter (R$2,616) and increased 2.8% over the same quarter a year ago (R$2,240).

In the comparison between the third and fourth quarters of 2020, the Northeast (R$1,683) and Southeast (R$2,903) regions registered a reduction in the earnings (-3.7% and -5.3%, respectively), whereas the others remained stable. Only the Southeast Region recorded a statistically-significant change over the fourth quarter of 2019 (increase of 4.0%).

The usual real average wage bill from all jobs of persons aged 14 or over, employed in the week of reference, with income from work, was estimated at R$210.7 billion reais, remaining stable in relation to the previous quarter (R$210.3 billion reais) and reducing in relation to the same quarter last year (R$225.5 billion reais).

MA has the highest informality rate (60.3%) and SC, the lowest one (27.8%)

The informality rate stayed at 39.5% of the employed population in the fourth quarter of 2020. The highest rates were in Maranhão (60.3%), Pará (59.6%) and Piauí (59.1%) and the lowest ones, in Santa Catarina (27.8%), Federal District (28.5%) and São Paulo (30.1%).

To calculate the proxy of the informality rate of the employed population, the following populations were considered: employed persons in the private sector without a formal contract; domestic workers without a formal contract; employers not registered in the CNPJ; self-employed workers not registered in the CNPJ; and assisting family workers.