In the first quarter of 2017, the compound labor underutilization rate – which aggregates the unemployed persons, time-related underemployed persons and the potential workforce – stood at 24.1%, which represented 26.5 million persons. In the fourth quarter of 2016, this rate was 22.2% for Brazil and, in the first quarter of 2016, 19.3%.

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 persons – was 18.8%, which represented 5.3 million time-related underemployed workers and 14.2 million unemployed persons. For Brazil, this rate was 17.2% in the fourth quarter of 2016 and 15.0% in the first quarter of 2016.

The combined rate of unemployment and potential workforce – which encompasses unemployed persons and those who would like to work, but did not look for a job, or even looked for a job, but were not available to work (potential workforce) – was 19.3%, which represented 21.3 million persons. For Brazil, this rate was 17.4% in the fourth quarter of 2016 and 15.4% in the first quarter of 2016.

The unemployment rate (13.7% in Brazil) rose in all the Major Regions in the first quarter of 2017 in relation to the fourth quarter of 2016: North (from 12.7% to 14.2%), Northeast (from 14.4% to 16.3%), Southeast (from 12.3% to 14.2%), South (from 7.7% to 9.3%) and Central-West (from 10.9% to 12.0%). The Northeast Region remained registering the highest unemployment rate among all the regions.

The average usual real earnings of workers stayed above the average for Brazil (R$2,110) in the Southeast (R$2,425), Central-West (R$2,355) and South (R$2,281) Regions, while the Northeast (R$1,449) and the North (R$1,602) stood below the average figure.

The comparison among the Major Regions between the fourth quarter of 2016 and the first quarter of 2017 recorded a positive change in the earnings in the North (2.6%) and Northeast (3.0%) Regions, remaining stable in the other ones. Only the Northeast (4.0%) and South (4.4%) Regions posted an increase in the earnings in relation to the first quarter of 2016, whereas the other regions did not report any significant change in the earnings.

The average usual real wage bill of employed persons (R$182.9 billion for Brazil as a whole) registered the highest regional figure in the Southeast (R$95.1 billion).

The complete publication of the Continuous PNAD, including the information released today, is available here. The main results for Brazil as a whole were already released on April 28, 2017. This release introduces new indicators on the underutilization of the workforce in the first quarter of 2017, as well as all the regional information and details of the main indicators of the labor market by sex, age and schooling level.

Northeast and Southeast register highest increases in unemployment rate

The unemployment rate in Brazil was estimated at 13.7% in the first quarter of 2017. This estimate showed a rise of 1.7 percentage points compared with the fourth quarter of 2016 (12.0%) and a rise of 2.8 percentage points against the first quarter of 2016 (10.9%) This indicator also rose in the annual comparison in all the Major Regions: North (from 10.5% to 14.2%), Northeast (from 12.8% to 16.3%), Southeast (from 11.4% to 14.2%), South (from 7.3% to 9.3%) and Central-West (from 9.7% to 12.0%). The Northeast Region remained registering the highest unemployment rate among all the regions, followed by the Southeast.

The unemployment rate of youngsters between 18 and 24 years of age (28.8%) remained at a higher level than that estimated for the overall average rate. Such behavior was noticed both for Brazil and for the five Major Regions, whose rate swung between 19.1% in the South and 32.9% in the Northeast. In the groups of persons aged between 25 and 39 years and between 40 and 59 years this indicator stayed at 12.8% and 7.9%, respectively.

Proportion of black and brown persons in unemployed population increases between 2012 and 2017

The contingent of unemployed persons in Brazil in the first quarter of 2012 was estimated at 7.6 million persons, when brown persons represented 48.9% of this population, followed by white (40.2%) and black (10.2%) persons. In the first quarter of 2017, this contingent rose to 14.1 million persons and the share of brown persons changed to 52.1%, white persons, 35.7% and black persons, 11.5%.

Unlike the employed persons, the percentage of women in the unemployed population was higher then men´s. They accounted for 50.6% of that population in the first quarter of 2017.

In nearly all the regions, the percentage of women in the unemployed population was higher than that of men, except for the Northeast Region, whose percentage was 48.8%. Representing 52.2% of the unemployed persons, the highest percentage of women was in the North Region.

North Region has the smaller contingent of women in employed population

Estimated at 88.9 million persons in the first quarter of 2017, the employed population comprised 68.0% of employees (including domestic workers), 4.6% of employers, 24.9% of self-employed persons and 2.5% of assisting family workers. Throughout the time series this composition did not change significantly.  In the North (31.7%) and Northeast Regions (30.3%), the percentage of self-employed workers was above the one seen in the other Regions.

The analysis by sex pointed out the predominance of men (56.9%). All the Major Regions confirmed this predominance, especially the North Region, in which men represented 60.9% of workers in the first quarter of 2017.

Concerning the contingent of employed persons, 12.5% of them were youngsters aged between 18 and 24 years, whereas adults in the brackets between 25 and 39 years and between 40 and 59 years represented 78.4% and senior citizens, 7.3%.

In the first quarter of 2017, 27.6% of the employed persons in Brazil did not complete the primary education, 57.0% completed at least the secondary education and 18.8% concluded the higher education.

The analysis pointed out an unbalanced picture at regional level. In the North (35.4%) and Northeast Regions (36.7%), the percentage of persons in the lowest schooling levels (unfinished primary education) was higher than the one seen in the other regions. In the Southeast (63.2%) and South (56.3%), the percentage of persons at working age who had completed at least the secondary education was higher than in the other regions. The Southeast Region (22.2%) posted the highest percentage of persons with complete higher education, whereas the Northeast reported the lowest one (13.3%).

All Major Regions register drop in employment-population ratio

Estimated at 53.1% for Brazil in the first quarter of 2017, the employment-population ratio dropped 0.9 p.p. compared with the previous quarter (54.0%) and reduced 1.7 p.p. against the first quarter of 2016 (54.7%). When comparing the employment-population ratio with the fourth quarter of 2016, all the Major Regions registered a drop in this indicator. Compared with the first quarter of 2016, all the Major Regions also declined. The highest decline took place in the North Region (3.6 p.p.) and the lowest, in the Southeast Region (0.6 p.p.).

In the first quarter of 2017, the employment-population ratio in Brazil was estimated at 63.2% for men and at 43.8% for women. The different behavior of this indicator among men and women was detected in the five Major Regions, highlighted by the North Region, which posted the highest difference (24.0 percentage points), and the Southeast Region, which registered the lowest difference (17.9 percentage points).

In the analysis by color or race, this indicator has been falling since 2012 for white persons. Black and brown persons recorded a slight increase between 2013 and 2014, followed by a retreat in recent years. Between 2016 and 2017, brown persons posted the biggest reduction (2.4 percentage points).

Senior citizens represent 36.1% of population out of workforce

The distribution of the population at working age – comprising persons who were in the workforce (total number of employed and unemployed persons) and who were out of the workforce – in Brazil in the first quarter of 2017 was 61.6% and 38.4%, respectively.

At regional level, the participation rate in the workforce – percentage of persons of the population aged 14 year and over in the workforce – in the Northeast was 54.7% in the first quarter of 2017, lower than those in the other regions. On the other hand, the Central-West Region registered the highest rate (65.2%).

Of the contingent of the population at working age that was in the workforce, 86.3% were employed and 13.7%, unemployed.

In the first quarter of 2017, nearly 36.1% of the population out of the workforce in Brazil comprised of senior citizens (persons aged 60 years and over). Those aged less than 25 years added up to 27.8% and the adults, aged between 25 and 59 years, represented 36.0%. The South (42.8%) and Southeast (40.9%) Regions posted the highest percentages of senior citizens out of the workforce.

The population out of the workforce was made up of a majority of women. In the first quarter of 2017, they represented 65.2%. In all the Regions the behavior was the same.  This picture did not significantly change along the time series available.