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Continuous PNAD

Unemployment retreats to 8.3% in quarter ending in May, same level of 2015

Section: Social Statistics | Irene Gomes

June 30, 2023 09h00 AM | Last Updated: June 30, 2023 04h59 PM


With a drop in the number of persons looking for a job, the unemployment rate retreats - Picture: Helena Pontes/IBGE News Agency

The unemployment rate was 8.3% in the quarter ended in May 2023, retreating 0.3 percentage points (p.p.) in relation to the previous quarter from December 2022 to February 2023. That is the lowest rate for a quarter ended in May since 2015, when it had been 8.3% as well. Compared with the same period in 2022, the unemployment rate fell 1.5 p.p. Data come from the Continuous National household Sample Survey (Continuous PNAD), released today (30) by the IBGE.

“The retreat in the quarter was more influenced by the drop in the number of persons looking for a job than by a a significant increase of workers. A lower pressure on the labor market caused the reduction of the unemployment rate,” explains Adriana Beringuy, the coordinator of Household Sample Surveys.

 

The unemployed population stayed at 8.9 million people, a drop of 3.0% in relation to the previous quarter and of -15.9% compared with the same period in 2022. The number of employed persons, 98.4 million, remained stable in the quarterly comparison and grew 0.9% in the year.

 

“Although the employed population did not expand significantly in the quarter, some economic activities registered punctual differences. Most of them remained stable, though the number of workers in Agriculture, livestock, forestry, fishery and aquaculture dropped (-1.9% or less 158 thousand persons) and in Public administration, defense, social security, education, human health and social services expanded (2.5% or more 429 thousand persons),” highlights Beringuy.

“In the case of the group of Public administration, defense, social security, education, human health and social services, the growth was leveraged by the segment of Education and by the insertion of persons employed without a formal contract,” details the coordinator.

In the annual scenario, Transportation, storage and mailing (4.2% or more 216 thousand persons), Information, communication and financial, real estate, professional and administrative activities (3.8% or more 440 thousand persons) and Public administration, defense, social security, education, human health and social services (4.5% or more 764 thousand persons) rose and the groups of Agriculture, livestock, forestry, fishery and aquaculture (-6.2% or less 542 thousand persons) and Construction (-3.7% or less 274 thousand persons) reduced.

Number of persons employed in the public sector grows in May

The results of the Continuous PNAD for May also unveiled that only the contingent of those employed in the public sector (12.1 million persons) grew in the quarterly comparison, increasing by 2.8%. The expansion was of 3.9% in the year. The increase was leveraged by workers without a formal contract in the sector, which grew 14.1% in the quarter and 17.3% in the year.

The number of persons employed without a formal contract in the private sector remained stable both in the quarterly comparison and in the annual one, standing at 12.9 million persons. On the other hand, the contingent of workers with a formal contract was of 36.8 million, remaining stable in the quarter, though increasing 3.5% (more 1.83 million persons) in the year.

The contingent of self-employed workers (25.2 million) also remained stable and the informality rate was of 38.9% of the employed population, adding up to 38.3 million informal workers. That rate had been 38.9% in the previous quarter and 40.1% in the same quarter of 2022.

Underutilization and discouragement drop in both comparisons

The composite underutilization rate (18.2%) dropped in both comparisons: 0.7 p.p. in the quarter end 3.7 p.p. in the year, adding up to 20.7 million underutilized persons.

The discouraged population, which stayed at 3.7 million persons, dropped as well. Compared with the previous quarter, the reduction was of 6.2% (less 244 thousand persons) and, in the annual comparison, of 14,3% (less 621 thousand persons). As a result, the percentage of discouraged persons in the workforce also dropped: 0.2 p.p. in the quarter and 0.5 p.p. in the year.

The population out of the workforce stood at 67.1 million persons, an increase of 0.6% in the quarterly comparison, which represents more 382 thousand persons. In the annual comparison, the increase was 3.6%, an increase of 2.3 million persons.

According to Beringuy, “the increasing parcel of the population at working age leaving the workforce does not signal an expansion in the contingent of discouraged persons, since this group has been dropping since 2021.”

Earnings remain stable in May

The usual real earnings (R$2,901) stood stable against the previous quarter and increased 6.6% in the year. The usual real wage bill (R$280.9 billion) was also stable from the previous quarter, but increased 7.9% in the annual comparison.

In terms of economic activities, the scenario remained stable in the quarter, but, in terms of job categories, the earnings of domestic workers with a formal contract expanded (2.9%) and the earnings in the public sector dropped (-1.7%).

“The increase in the contingent of workers in the public sector did not reflect in an increase in earnings. It was probably due to the higher share of workers without a formal contract and to the downward trend of earnings, even among workers with a formal contract,” notes the coordinator.

More about the survey

The Continuous PNAD is the main instrument to monitor workforce in Brazil. The survey sample per quarter corresponds to 211 thousand households surveyed in Brazil. Nearly two thousand interviewers work in the survey in 26 states and in the Federal District, integrated to the data collection network of more than 500 IBGE branches.

Due to the Covid-19 pandemic, the IBGE implemented data collection by telephone on March 17, 2020. In July 2021, face-to-face data collection was resumed.  The identity of the interviewers can be confirmed at the Answering the IBGE website or through the Call Center (0800 7218181), and their ID numbers can be requested by the informants.

See PNAD data on Sidra. The next release of Continuous PNAD, related to the quarter ended in June, will be on July 28.


Keywords: Desemprego recua a 8, 3% no trimestre encerrado em maio, mesmo nível de 2015



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