The compound labor underutilization rate (which joins unemployment rate, time-related underemployment rate and potential workforce) stood at 22.2% in the 4th quarter of 2016 - above the result of the 3rd quarter of 2016 (21.2%) and of the 4th quarter of 2015 (17.3%). In 2016, the indictor stood at 20.9%, on average. The Northeast Region had the highest rate (33.0%) in Q4, whereas the lowest, took place in the South (13.4%). Among the states, Bahia reached the highest level (36.2%), while Santa Catarina (9.4%) got the lowest. In Brazil, there were 24.3 million persons in such condition, a 6.0% rise in relation to the 3rd quarter, which add up to 1.4 million persons. In relation to the 4th quarter of 2015, whose figure was 18.5 million, the increase was of 31.4% or 5.8 million persons.

The compound rate of time-related underemployment and unemployment (employed persons working less than 40 weekly hours, but who would like to work for a longer period coupled with the unemployed) was 17.2%. In the previous quarter, the index recorded 16.5% and in the 4th quarter of 2015, 13.0%. The highest one was in the Northeast (23.9%), while the lowest, in the South (10.9%).

The combined rate of unemployment and potential workforce, which encompasses persons who would like to work, but did not carry out activities to seek employment in a recent period, or unavailable job seekers (potential workforce), was 17.4%, above the 16.8% recorded in the previous quarter and of the 13.5% of the last quarter of 2015. In the Northeast, the rate was 24.6%, the highest among the Major Regions. The lowest was in the South (10.2%).

As to the unemployment rate of Q4, whose data for Brazil the IBGE had already put out on 01/31/2016 (12.0%), it was above the national average in the Northeast (14.4%), North (12.7%) and Southeast (12.3%). Central-West (10.9%) and South (7.7%) were the regions where the rates were below the indicator for Brazil. In Amapá, the indicator stood at 16.8%, the highest rate among the states. In Santa Catarina, the result was 6.2%, the lowest for the Federation Units. Disaggregated data by color and race, released by the Ibge today for the first time, revealed that the unemployment rate of the black (14.4%) and brown persons (14.1%) stood above the national average, whereas for the white, it was 9.5%.

The complete publication of the Continuous PNAD - quarterly edition can be accessed here.

Northeast, North and Southeast with unemployment rate above the national average

In Q4 of 2016, the unemployment rate, in Brazil, was estimated at 12.0%. This estimate remained stable in comparison with the 3rd quarter of 2016 (11.8%). Over the 4th quarter of 2015 (9.0%), the rate registered a rise of 3.1 percentage points. In the annual comparison, there was growth in the indicator in all Major Regions: North (8.6% to 12.7%), Northeast (10.5% to 14.4%), Southeast (9.6% to 12.3%), South (5.7% to 7.7%) and Central-West (7.4% to 10.9%). The Northeast region remained with the highest unemployment rate among all regions.

The unemployment rate of youngsters aged 18 to 24 (25.9%) kept the level above the overall average. This behavior was seen both for Brazil and for each one of the five Major Regions, where the rate oscillated between 16.5% in the South and 30.3% in the Northeast. In the age groups of people from 25 to 39 and of 40 to 59, the indicator was 11.2% and 6.9%, respectively.

The differences between the unemployment rate for men (10.7%) and women (13.8%) were significant in the 4th quarter of 2016. This trend was seen in the five Major Regions.

By level of schooling, the unemployment rate for the persons with incomplete secondary education (22.0%) was higher than that of the other levels. The rate for the group of persons who had not finished higher education was estimated at 13.6%, more than the double of the rate reported by those with complete higher education (5.8%).

Just Northeast has percentage of women (48.7%) in unemployed population lower than men's (51.3%).

The percentage of women (50.3%) in the unemployed population was higher than men's (49.7%) in Q4. It was like this in all regions. The exception was the Northeast, where women represented 48.7% of the unemployed population. In the Central-West Region, the percentage of women was the highest (52.9%).

The group aged between 14 and 17 accounted for 8.4% of the unemployed persons, a reduction of 0.8 percentage points from the 4th quarter of 2015 to the 4th quarter of 2016. The greatest share was that of adults aged 25 to 39 (35.6%).

In the 4th quarter of 2016, 50.6% of the unemployed persons had at least finished high school. Around 26.1% had not finished primary school. Those with complete higher education represented 8.2%. These results did not vary much along the available time series. 

Women represent 39.1% of the employed population in the North

Even representing 52.2% of the working-age population (14 or over), women (43.0%) had a lower participation than men (57.0%) in the employed population. This occurred in all regions, especially in the North, where men represented 60.9% of the workers and women, 39.1% in Q4 of 2016. Throughout the time series of the survey, this trend did not vary much in any of the regions.

The analysis of the employed persons in the 4th quarter of 2016, by groups of age, showed that 12.7% were youngsters aged 18 to 24, and that the adults, those of 25 to 39 and 40 to 59, represented 78.2%. The elderly, on their turn, corresponded to 7.3%. 

The contribution of the minors (14 to 17) in the employed population recorded a downward trend between the 4th quarter of 2015 (2.2%) and the same quarter of 2016 (1.7%). The same was seen for the group aged 18 to 24, which went from 13.3% to 12.7%, in the same period. For the other categories of age, the trend was of increase in the participation in the employed population.

In the 4th quarter of 2016, in Brazil, among the employed persons, 28.1% had not finished primary school, 53.5% had finished at least high school and 18.5% had complete higher education.

In the North (36.3%) and Northeast (37.5%), the percentage of persons in the lowest education levels (incomplete primary education) was higher than that of the other regions. In the Southeast (62.4%) and South (55.6%), the percentage of persons that had at least finished secondary education was above those of the other Regions. The Southeast Region (21.9%) presented the highest percentage of persons with a higher degree, whereas the Northeast Region had the lowest one (12.9%).

Proportion of self-employed is higher in the North and Northeast

In the 4th quarter of 2016, the employed population comprised 68.6% of employees, 4.6% of employers, 24.5% of self-employed and 2.3% of contributing family workers. Throughout the time series of the survey, this trend did not vary significantly.

The survey pointed out to regional differences among the ways of insertion of the employee in the labor market. In the North (31.7%) and Northeast (30.2%), the percentage of self-employed was higher than that of the other regions. Conversely, in the category of the employees, it was seen that the Southeast (72.6%) and Central-West Regions (71.7%) presented the highest contribution of these workers.

A considerable share of these employees was in the private sector (71.9%), 18.2% in the public sector and the others were in domestic services (9.9%).

The contingent of the unemployed in Brazil in the 4th quarter of 2012 was estimated at 6.7 million persons. Brown persons were 52.4% of this population, followed by the white (37.5%) and black ones (9.6%). In the 4th quarter of 2016, this contingent rose to 12.3 million persons, and the participation of the brown went to 52.7%; that of the white, to 35.6%; and of the blacks rose to 11.0%.

The contingent of the employed (90.3 million de people) in the 4th quarter of 2016 was made of 41.7 million self-declared white persons (46.2%); 39.6 million self-declared brown (43.9%) and 8.1 million self-declared black (8.9%). In the 4th quarter of 2012, the self-declared white population represented 48.0% of the total, self-declared brown, 43.8%, and self-declared black, 7.5%.

The average usual real earnings of the workers in the country was estimated at R$2,043 in the 4th quarter of 2016. The white population’s earnings was estimated at R$2,660 (above the national average), that of the brown persons, at R$1,480 and that of the black ones, at R$1,461 (below the national average).

In the 4th quarter of 2016, 76.4% of the employed in the private sector had a formal labor contract, 1.5 percentage points less than in the 4th quarter of 2015. Among domestic workers, 31.9% had a formal labor contract; in the same quarter last year, this proportion was of 33.3%. Military and statutory servants corresponded to 71.7% of the employed in the public sector in the 4th quarter of 2016.

The percentage of workers with a formal labor contract in the private sector had distinct configurations. The North (59.4%) and Northeast Regions (61.5%) presented levels below the others; while the South (84.0%) reached a higher level.

Average real earnings grow 2.0% in Northeast Region

In the 4th quarter of 2016, the average usual real earnings of all workers aged 14 or over, employed in the week of reference, with income from work, was estimated at R$2.043, as already released by the IBGE. This result revealed stability both in relation to the previous quarter (R$ 2,026) and the same quarter of the previous year (R$ 2,033).

In the comparison with the Major Regions, between the 3rd and the 4th quarter of 2016, there was a positive change in the earnings of the Northeast (2.0%), whereas in the others there was stability. In relation to the fourth quarter 2015 there was no significant change in the earnings.

Average real wage bill grows 2.0% in the South

In the 4th quarter of 2016, the average usual real wage bill of all workers aged 14 or over, employed in the week of reference, with income from work, was estimated at R$180.0 billion, a rise of 1.2% in relation to the previous quarter. In the comparison with the 4th quarter of 2015 (R$ 182.2), the estimate did not show any statistically-significant change.

The Southeast Region presented the highest real wage bill along the time series, with records of R$93.2 billion in the 4th quarter of 2016. In the comparison with the 3rd quarter of 2016, just the South did not post change in the wage bill (high of 2.0%). In relation to the 4th quarter of the previous year, the North and Northeast Regions recorded drops of 5.0% and 3.5% in the wage bill and the other regions remained stable.

Unemployment rate of black and brown persons above national average

The unemployment rate of the black (14.4%) and brown persons (14.1%) stood above the national average (12.0%) in the 4th quarter of 2016, whereas that of the white persons stood at 9.5%. In the 1st quarter of 2012, when the average rate was estimated at 7.9%, that of the black ones corresponded to 9.7%; that of the brown ones, to 9.1% and that of the white ones, 6.6%.