The workforce underutilization rate – which gathers those unemployed, time-related underemployed and those in the potential workforce – stayed at 23.6% in the fourth quarter of 2017, which represented 26.4 million persons. In the third quarter of 2017, this rate was 23.9% for Brazil, and, in the fourth quarter of 2016, 22.2%. The annual average rate for 2017 stood at 23.8%.

Among the Federation Units, Piauí (40.7%), Bahia (37.7%), Alagoas (36.5%) and Maranhão (35.8%) registered the highest workforce underutilization rates in the fourth quarter of 2017, whereas Santa Catarina (10.7%), Mato Grosso (14.3%), Rio Grande do Sul (15.5%) and Rondônia (15.8%) recorded the lowest rates.

The unemployment rate (11.8% for Brazil) reduced 0.6 percentage points in the fourth quarter of 2017 compared with the third quarter of 2017 (12.4%) and remained statistically stable against the fourth quarter of 2016 (12.0%). This indicator retreated in nearly every region, compared with the third quarter of 2017: North (from 12.2% to 11.3%), Northeast (from 14.8% to 13.8%) and Southeast (from 13.2% to 12.6%). Despite the drop in the quarterly comparison, the rate in the Northeast Region (13.8%) remained as the highest unemployment rate among all the regions. In the annual comparison, the rate declined in the North, Northeast and Central-West Regions, remaining stable in the Southeast and South.>

The Federation Units that posted the highest unemployment rates in the fourth quarter of 2017 were Amapá (18.8%), Pernambuco (16.8%), Alagoas (15.5%), Rio de Janeiro (15.1%) and Bahia (15.0%). The lowest unemployment rates were reported in Santa Catarina (6.3%) Mato Grosso do Sul (7.3%), Mato Grosso (7.3%), Rondônia (7.6%) and Rio Grande do Sul (8.0%).

The Continuous PNAD brings data on discouragement for the first time ever. In the fourth quarter of 2017, the contingent of discouraged was of 4.3 million, the highest one in the time series started in 2012. The Northeast had 59.7% of the total number of discouraged persons. Among the Federation Units, the biggest contingents were in Bahia (663 thousand) and Maranhão (410 thousand). The discouragement rate stayed at 3.9% of the expanded Brazilian workforce in the fourth quarter. Alagoas registered the highest rate among the Federation Units (15.4%).

Considering jobs with a formal contract in the private sector – except for domestic workers –, only the North Region expanded over 2016: from 59.4% to 61.0%, while the other regions recorded drops in the proportion of these workers.

Concerning the composition of the employed population in the fourth quarter of 2017, the Southeast and Central-West had more employees, while the North and Northeast, more self-employed workers.

The share of the black population in the contingent of unemployed persons increased from 9.6% in 2012 to 11.9% in 2017.

The support material of this release is on the right side.

Contingent of discouraged persons in the Northeast corresponds to 59.7% of the national overall

The discouraged population is defined as that out of the workforce due to one of the following reasons: could not hold a job, or did not have any experience, or was too young or old, or could not find a job in the locality – and that, if it could hold a job, would be available to take over the job position. It is part of the potential workforce. In Brazil, this population reached 4.3 million persons in the fourth quarter of 2017, the biggest contingent since the beginning of the time series, started in the first quarter of 2012 (1.9 million). Of the national total, 59.7% were in the Northeast (2.6 million persons). Among the Federation Units, the biggest contingents were in Bahia (663 thousand) and Maranhão (410 thousand). The discouragement rate stayed at 3.9% of the expanded Brazilian workforce in the fourth quarter. Alagoas registered the highest rate among the Federation Units (15.4%).

The combined time-related underemployment and unemployment rate – employed persons working less than 40 hours per week, but who would like to work for longer hours, added to those unemployed – was 18.0% in the fourth quarter, which represented 6.5 million time-related underemployed workers and 12.3 million unemployed persons. In the third quarter of 2017, this rate was 18.5% for Brazil, and, in the fourth quarter of 2016, 17.2%. The average annual rate stood at 18.4%. Among the Federation Units, the highest combined rates in the fourth quarter were: Piauí (29.3%), Bahia (28.3%), Sergipe (24.9%), Pernambuco (24.7%) and Maranhão (23.4%) and the lowest ones were reported in Santa Catarina (8.7%), Mato Grosso (10.2%), Mato Grosso do Sul (12.3%), Paraná (12.4%), Rondônia (12.6%) and Rio Grande do Sul (12.8%).

The combined unemployment and potential workforce rate – which comprises the unemployed persons and those who would like to work, but did not look for a job, or those who sought it, but were not available to work (potential work force) – was 17.8%, representing 20.0 million persons. In the third quarter of 2017, this rate was 18.3% for Brazil, and, in the fourth quarter of 2016, 17.4%. The average annual rate stood at 18.4%. Among the Federation Units, the highest combined rates in the fourth quarter were reported in Alagoas (31.0%), Maranhão (27.4%), Piauí (27.2%), Amapá (26.6%), Rio Grande do Norte (26.1%) and Bahia (26.1%) and the lowest ones were posted in Santa Catarina (8.4%), Rio Grande do Sul (10.8%), Rondônia (11.0%) and Mato Grosso (11.6%).

Amapá shows highest unemployment rates in Q4 and in annual average

The unemployment rate in Brazil was estimated at 11.8% in the fourth quarter of 2017. This indicator fell 0.6 p.p. over the previous quarter in the same year (12.4%). Except for the South and Central-West Regions, in which this indicator was statistically stable in relation to that of the third quarter of 2017, the Northeast (13.8%), North (11.3%) and Southeast (12.6%) had a decrease in the unemployment rate.  In the annual comparison, The North, Northeast and Central-West Regions registered a drop in the unemployment rate.

Among the Federation Units, the highest average annual unemployment rates  in 2017 were recorded in Amapá (17.7%), Pernambuco (17.6%) and Bahia (16.9%), and the lowest ones in Santa Catarina (7.1%), Rondônia (8.1%) and Rio Grande do Sul (8.3%). In the index posted in the fourth quarter of 2017, the highest unemployment rates were registered in Amapá (18.8%), Pernambuco (16.8%) and Alagoas (15.5%), and the lowest ones in Santa Catarina (6.3%) Mato Grosso do Sul (7.3%) and Mato Grosso (7.3%).

South and Central-West Regions have higher employment-population ratio

The indicator that measures the parcel of the employed population in relation to the population at working age, the employment-population ratio, was estimated at 54.5% for Brazil in the fourth quarter of 2017, increasing 0.4 percentage points over the previous quarter (54.1%) and 0.5 percentage points over the fourth quarter of 2016 (54.0%).

In the regional scenario, different levels of employment-population ratios were recorded. The South (59.7%) and Central-West (59.0%) were the ones with the highest percentages of  persons working among those at working age. The Northeast Region recorded the lowest employment-population ratio (47.3%). Compared with the fourth quarter of 2016, only the Southeast Region expanded the employment-population ratio

The age groups with the highest employment-population ratios were those between 25 and 39 years (73.5%) and between 40 and 59 years (68.0%).

Southeast and Central-West have more employees, North and Northeast, more self-employed workers

Estimated at 92.1 million persons, the employed population comprised  67.6% of employees – including domestic workers –, 4.8% of employers, 25.2% of self-employed workers and 2.4% of assisting family workers, in the fourth quarter of 2017. In the North (32.6%) and Northeast (28.7%) Regions, the percentage of self-employed workers was higher than in the other regions. On the other hand, the Southeast (71.0%) and Central-West (69.9%) registered the highest shares of employees.

Only North Region increases formal contract between 2016 and 2017

In the fourth quarter of 2017, 75.0% of those employed in the private sector – except for domestic workers – had a formal contract, 1.4 percentage points less than in the fourth quarter of 2016. The Northeast (59.1%) and North (61.0%) recorded the lowest estimates of this indicator, whereas the South Region maintained the highest level (82.8%), even continuously dropping since 2016. The survey pointed out that 29.5% of the domestic workers had a formal labor contract. In the same quarter in 2016, this proportion had been 31.9%. Only the North Region expanded this estimate over 2016: from 59.4% to 61.0%, while the others posted a drop in the proportion of these employees.

Women remain majority in population at working age and minority in employed population

In the fourth quarter of 2017, women remained as the majority in the population at working age, both in Brazil (52.4%) and in every Major Region. Among the employed persons, men prevailed (56.3%), maintaining the trend in the time series. All the Major Regions confirmed this predominance, especially the North Region, in which men represented 59.6% of workers in the fourth quarter of 2017.

In the fourth quarter of 2017, the employment-population ratio in Brazil was estimated at 64.5% for men and at 45.4% for women. The different behavior of this indicator between men and women was detected in the five Major Regions, with a highlight to the North Region, which posted the highest difference (22.3 percentage points), and the Southeast Region, with the lowest one (17.8 percentage points).

Women were the majority (50.7%) of the unemployed population in the fourth quarter of 2017. The percentage of women in the unemployed population was higher than that of men in nearly every region, except for the Northeast Region, in which this percentage represented 47.4%. The percentage of women was the highest in the Central-West Region, representing 53.9% of the unemployed persons.

Concerning the unemployment rate in the fourth quarter (11.8%), it was estimated at 10.5% for men and 13.4% for women. This behavior was noticed in every Major Region. Women remained as the most part of the population out of the workforce, both in Brazil (65.2%) and in every regional analysis.

Share of black persons increases in contingent of unemployed persons between 2012 and 2017

The contingent of unemployed persons in the fourth quarter of 2012 was estimated at 6.7 million persons for Brazil, led by brown persons (52.4%), followed by white (37.5%) and black (9.6%) persons. This contingent rose to 12.3 million persons in the fourth quarter of 2017, changing the share of brown persons to 51.9%, reducing that of white persons to 35.6% and increasing that of black persons to 11.9%.

The unemployment rate, disaggregated by color or race, pointed out that the rate of those self-declared white (9.5%) stood below the national average, though that of black (14.5%) and brown (13.6%) persons stood above it. While the average rate was estimated at 6.9% in the fourth quarter of 2012, that of black persons corresponded to 8.6%, brown persons, 8.1% and white persons, 5.4%.

In the fourth quarter of 2017, brown persons represented 48.1% of the population out of the workforce, followed by white (42.6%) and black (8.3%) persons. Against 2012, there was a dropping trend in the proportion of white self-declared persons and an increase in the blacks and browns.

Average earnings remain stable over Q3 in every region

In the fourth quarter of 2017, the average real income from all jobs, usually earned per month, by persons aged 14 years and over, employed in the reference week, with income from labor, was estimated at R$2,154, remaining stable compared with the immediately previous quarter and the same quarter in 2016. Every Major Region registered statistically-stable figures over the third quarter of 2017. The North Region (R$1,655) was the only one to expand earnings in the fourth quarter of 2016, whereas the others remained stable.