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Continuous PNAD: unemployment rate is 11.8% in quarter ending in December and 2017 average closes at 12.7%

January 31, 2018 09h00 AM | Last Updated: February 06, 2018 02h52 PM

The unemployment rate (11.8%) fell -0.6 percentage points in the October-December 2017 quarter in relation to the July-September quarter (12.4%). It remained stable when compared with the same quarter in 2016 (12.0%). The annual average rate changed from 11.5% in 2016 to 12.7% in 2017, the highest one in the time series of the survey.

The unemployed population (12.3 million) dropped 5% (less 650 thousand persons) in relation to the previous quarter (13 million persons). It remained stable in relation to the same quarter in 2016, when 12.3 million persons were unemployed. Between 2014 and 2017, the annual average number of unemployed persons changed from 6.7 million to 13.2 million.

The employed population (92.1 million) increased 0.9% over the previous quarter (more 811 thousand persons). It rose 2.0% against the same quarter in 2016. This population increased 1.3% in relation to the annual average in 2012, but dropped 1.6% against 2014.

The number of employees with a formal contract (33.3 million) remained stable over the previous quarter (July-September) and retreated 2% (less 685 thousand persons) in relation to the same quarter in 2016. This contingent reduced by 3.3 million persons when comparing the annual averages between 2014 and 2017.

The number of employees without a formal contract (11.1 million persons) remained stable in relation to the previous quarter and rose 5.7% (more 598 thousand persons) in relation to the same quarter in 2016. This contingent increased by 330 thousand persons when comparing the annual averages between 2014 and 2017.

The category of self-employed workers (23.2 million persons) rose 1.3% over the July-September quarter (more 288 thousand persons). It rose 4.8% (more 1.1 million persons) over the same period in 2016. Concerning the annual averages, self employment involved about 22.8% of the workers (20.4 million) in 2012, changing to 25.0% (22.7 million) in 2017.

The contingent of employers (4.4 million persons) increased 3.9% over the previous quarter and 6.4% (more 263 thousand persons) in relation to the same quarter a year ago. The comparison with the annual average in 2012 registered a rise of 19.3% in this category (more 687 thousand employers).

The category of domestic workers (6.4 million persons) increased 3.1% in the comparison with the July-September 2017 quarter. It rose 4.3%, i.e., more 262 thousand persons against the October-December 2016 quarter. Between 2014 and 2017, nearly 204 thousand persons were inserted in this category of the labor market.

The average usual real earnings (R$2,154) in the October-December quarter remained stable in both comparisons. It rose 4.4% in the comparison between the annual averages in 2012 and 2017. The usual real wage bill (R$193.4 billion) increased 1.9% in relation to the July-September quarter. It rose 3.6% (more R$6.6 billion) against the same quarter in 2016. It increased 6.8% in relation to 2012 and fell (-0.9%) against 2014.

The complete publication, summary chart and 2012-2017 review of the Continuous PNAD - Monthly edition are on the right of this page.

Indicator / Period Oct-Dec 2017 Jul-Sep 2017 Oct-Dec 2016 Average 2017 
Unemployment rate 11.80% 12.40% 12.00% 12.70% 
Usual real earnings R$2,154 R$2,134 R$2,120 R$2,141 
Change of earnings in relation to:   0.9% (stable) 1.6% (stable) 2.4% against 2016 

In the quarter between October and December 2017, 12.3 million persons were unemployed in Brazil. This contingent changed -5%, i.e., less 650 thousand persons against the July-September 2017 quarter, when unemployment was estimated at 13 million persons. This estimate remained stable when compared with the same quarter last year, when 12.3 million persons were unemployed.

Unemployment Rate - Brazil - 2012/2017
  2012 2013 2014 2015 2016 2017
Nov-Dec-Jan   7.2 6.4 6.8 9.5 12.6
Dec-Jan-Feb   7.7 6.8 7.4 10.2 13.2
Jan-Feb-Mar 7.9 8 7.2 7.9 10.9 13.7
Feb-Mar-Apr 7.8 7.8 7.1 8 11.2 13.6
Mar-Apr-May 7.6 7.6 7 8.1 11.2 13.3
Apr-May-Jun 7.5 7.4 6.8 8.3 11.3 13
May-Jun-Jul 7.4 7.3 6.9 8.6 11.6 12.8
Jun-Jul-Aug 7.3 7.1 6.9 8.7 11.8 12.6
Jul-Aug-Sep 7.1 6.9 6.8 8.9 11.8 12.4
Aug-Sep-Oct 6.9 6.7 6.6 8.9 11.8 12.2
Sep-Oct-Nov 6.8 6.5 6.5 9 11.9 12
Oct-Nov-Dec 6.9 6.2 6.5 9 12 11.8
Source: IBGE. Pesquisa Nacional por Amostra de Domicílios Contínua,       
Note: Only shaded data are comparable          

The number of employed persons was estimated at nearly 92.1 million in the quarter of October to December 2017. This estimate showed an increase of 0.9% over the previous quarter (July to September 2017), i.e., more 811 thousand persons. This indicator also posted a positive change (2.0%) in relation to the same quarter in 2016, when 90.3 million persons were employed in Brazil.

The employment-population ratio – percentage of employed persons in the population at working age – was estimated at 54.5% in the quarter from October to December 2017, registering an increase of 0.4 percentage points against the quarter from July to September 2017 (54.1%). This indicator recorded a positive change (0.5 percentage points) in relation to the same quarter a year ago, when the employment-population ratio was 54.0%.

The contingent in the workforce – employed and unemployed persons – was estimated at 104.4 million persons in the quarter between October and December 2017. This population remained stable when compared with the quarter between July and September 2017. It expanded 1.8% (more 1.8 million persons) against the same quarter in 2016.

The contingent out of the workforce was estimated at 64.6 million persons in the quarter from October to December 2017. This population remained stable when compared with the quarter between July and September 2017. It also remained stable against the same quarter last year.

Estimated at 33.3 million persons, the contingent of persons employed in the private sector with a formal contract (excluding domestic workers) remained stable against the previous quarter (July to September 2017). It changed -2% (-685 thousand persons) compared with the October-December 2016 quarter.

In the period from October to December 2017, the category ofthose employed in the private sector without a formal contract (11.1 million persons) remained stable in relation to the previous quarter. It rose (5.7%) in relation to the same quarter a year ago, representing an additional estimated at 598 thousand persons.

The category of self-employed workers, formed by 23.2 million persons, recorded an increase of 1.3% in the comparison with the previous quarter (July to September 2017), meaning an additional 288 thousand persons in this contingent. This indicator also increased (4.8%) over the same period last year, representing an additional estimated at 1.1 million persons.

The contingent of employers (4.4 million persons) increased 3.9% over the previous quarter and 6.4% (more 263 thousand persons) in relation to the same quarter a year ago.

The category of domestic workers (6.4 million persons) increased 3.1% in the comparison with the July-September 2017 quarter. It rose 4.3% (more 262 thousand persons) against the October-December 2016 quarter.

Estimated at 11.5 million persons, those employed in the public sector – including statutory servants and military – remained stable in both comparisons.

The analysis of the contingent of employed persons, according to the groups of activity of the moving quarter from October to December 2017, in relation to the July-September 2017 quarter, pointed out to an increase in the following categories: Trade, repair of motor vehicles and motorcycles (2.1% or more 368 thousand persons); Other services (3.6% or more 163 thousand persons) and Domestic services (3.3% or more 204 thousand persons). The other groups did not show any significant change.

The following categories rose in relation to the same quarter in 2016: Industry (4.6% or more 527 thousand persons); Housing and food (8.7% or more 420 thousand persons); Information, communication and financial, real estate, professional and administrative activities (4.2% or more 408 thousand persons); Other services (8.7% or more 375 thousand persons) and Domestic services (4.2% or more 260 thousand persons). Agriculture, livestock, forestry, fishing and aquiculture reduced by 5.1% (less 459 thousand persons).

The average usual real earnings from all jobs of employed persons was estimated at R$2,154 in the October-December 2017 quarter, remaining stable against the July-September 2017 quarter (R$2,134) and in relation to the same quarter in 2016 (R$2,120).

Average monthly real earnings, usually earned in the reference month, from all jobs of employed persons - Brazil - 2012/2017 - (R$)            
  2012 2013 2014 2015 2016 2017
Nov-Dec-Jan   2061 2120 2166 2099 2127
Dec-Jan-Feb   2073 2142 2165 2081 2132
Jan-Feb-Mar 2041 2085 2166 2166 2096 2148
Feb-Mar-Apr 2055 2092 2163 2155 2084 2139
Mar-Apr-May 2043 2102 2157 2150 2092 2139
Apr-May-Jun 2044 2120 2124 2155 2065 2127
May-Jun-Jul 2061 2133 2095 2137 2072 2135
Jun-Jul-Aug 2064 2141 2105 2125 2088 2128
Jul-Aug-Sep 2063 2140 2128 2128 2084 2134
Aug-Sep-Oct 2058 2147 2144 2119 2091 2143
Sep-Oct-Nov 2056 2139 2137 2103 2093 2148
Oct-Nov-Dec 2054 2126 2148 2091 2120 2154
Source: IBGE. Pesquisa Nacional por Amostra de Domicílios Contínua,    
Note: Only shaded data are comparable

The analysis of the average usual real earnings from the main job of the moving quarter from October to December 2017 in relation to the July-September 2017 quarter, according to the groups of activity, pointed out that all the groups remained stable. The category of Overall industry increased (5.5% or more R$112) in the comparison with the quarter between October and December 2016. The group of Housing and food reduced (6% or less R$87).

The real wage bill usually earned from all jobs by employed persons was estimated at R$193.4 billion for the quarter from October to December 2017. It rose 1.9% (more R$3.5 billion) in relation to the moving quarter between July and September 2017. It increased 3.6% or more R$6.6 billion against the same quarter in 2016.

2012-2017 Review

This study shows the major movements reported in the Brazilian labor market since the beginning of the time series of the Continuous PNAD in 2012, through the computation of the arithmetic averages of the four calendar quarters of each year for the main estimates.

In the study, 2017 – last year in the time series – was compared with 2016, 2012 – first year in the time series – and 2014, year in which the Brazilian labor market registered the lowest unemployment rate along the six years of the time series of the survey.

From 2012 to 2017, unemployed population grows 6.5 million

In 2017, the workforce in Brazil (103.9 million persons) grew 1.7% (more 1.7 million persons) in relation to 2016. While employment remained virtually stable (+264 thousand) in this period, unemployment increased by 1.5 million. Between 2016 and 2017, nearly 85% of the increase in the workforce in Brazil was due to the increase in unemployment.

In 2017, the employed population (90.6 million) recorded virtually the same contingent of employed persons in 2016 (90.3 million). In relation to 2014, when the employed population was estimated at 92.1 million, the loss of job positions hit 1.5 million.

Between 2014 and 2017, the unemployed population changed from 6.7 million to 13.2 million (increase of 6.5 million), nearly doubling in this period (96.2%). In 2014, the Brazilian labor market posted the lowest unemployment-population ratio since the beginning of the time series of the survey (2012). Comparing 2017 with the previous year, the contingent of unemployed persons rose by 1.5 million. Although this increase was lower than that noticed between 2015 and 2016 (3.2 million), unemployment remained increasing.

As a result of the expressive increase in the contingent of unemployed persons and of the stability of employment, the unemployment rate in Brazil changed from 11.5% in 2016 to 12.7% in 2017, registering the highest rate in the time series of the survey. It was estimated at 6.8% in 2014, the lowest rate in the time series.

Having reached its highest level in 2014 (56.9%), the employment-population ratio hit 53.9% in 2017, reinforcing the downward trend and reaching the lowest level in the time series of the survey.

2017 has 10.7 million employees without a formal contract

In 2012, Brazil had 34.3 million persons employed in the private sector with a formal contract. In 2014, this contingent hit the highest level in the time series (36.6 million). Three years later, 3.3 million workers lost the formal contract and Brazil had 33.3 million workers in this category.

The year of 2017 closed with 10.7 million employees without a formal contract. The comparison with 2014, when this category encompassed 10.4 million workers, recorded an upward trend in this estimate.

In 2012, domestic services had 6.1 million workers in Brazil, hitting its lowest level in 2014, when Brazil had 6 million domestic workers. This category rose once again in 2017, reaching 6.2 million workers. In three years, nearly 204 thousand persons were inserted in this labor market in Brazil.

In 2017, the number of employers increased in Brazil, hitting 4.2 million. The comparison with 2012 pointed out a growth of 19.3% in this category (more 687 thousand employers). This increase was mainly in the range of small employers involved in informal activities.

In 2012, self employment involved about 22.8% of the workers (20.4 million). In 2017, it represented 25.0% of the workers (22.7 million). The increase in the share of this category in the labor market was due to the increase of 2.2 million workers in this insertion in relation to 2012. An increase of 1.4 million was reported in this form of insertion over 2014.

In six years, Overall industry reduces 1.4 million job positions

Agriculture, livestock, forestry, fishing and aquiculture was the group that mostly lost workers between 2016 (9.2 million) and 2017 (8.6 million), showing a reduction of 6.5%. In six years, this group lost 1.7 million workers.

Overall industry closed 2017 with 11.7 million workers, posting a reduction of 1.4 million persons in its contingent in six years. The drop was even bigger (less 1.5 million) over 2014, when 13.2 million workers were employed in this group.

6.8 million workers were employed in Construction in 2017, a smaller contingent than that registered in the previous year (7.3 million). From 2014 – when 7.8 million workers were employed in this group – to 2017, 964 thousand workers (12.3%) were lost. In percentage terms, this was the group that mostly lost workers in this period.

In 2017, 17.5 million persons worked in Trade, repair of motor vehicles and motorcycles. This is one the few groups that maintained the contingent of workers relatively stable, mainly due to the fact that it is more suitable to informality.

About 4.6 million workers were inserted in the group of Transportation, storage and mailing in 2017. This group has been rising over the last years, which could be associated with the growth in the number of "application drivers".

In 2017, about 5.1 million workers were inserted in the group of Housing and food. Having increased by nearly 1.3 million workers (increase of 33.7%), it was one of the few groups that recorded an expressive increase over the last six years. It rose by 907 thousand workers (21.4%) in relation to 2014, which was mainly due to food services, particularly street vendors.

Having dropped in 2016, the group of Information, communication and financial, real estate, professional and administrative activities rose once again in 2017, reaching 10 million workers, though still below that estimated in 2014 (10.3 million).

15.6 million persons worked in Public administration, defense, social security, education, human health and social services in 2017, representing a growth of about 1 million workers over 2012 (7.2%) and nearly half million in relation to 2014.

About 4.5 million workers were inserted in Other services in 2017, a number 16.8% higher than that registered in 2012 and 7.0% above that recorded in 2014. The upward trend in this group is mainly justified by its suitability to informal job positions.

In 2017, average earnings rises in relation to 2016

The average usual real earnings from all jobs of persons with earnings from labor was estimated at R$2,141, recording a rise over 2016 (2.4%). It increased 4.4% when compared with 2012. It remained stable in relation to 2014.

Theaverage real wage bill from all jobs of persons with earnings from labor was of R$189,155 billion, a rise of 2.6% over 2016. It advanced 6.8% when compared with 2012. It dropped (-0.9%) in relation to 2014.