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Continuous PNAD: labor underutilization stays at 23.9% in Q3/2017

November 17, 2017 09h00 AM | Last Updated: November 21, 2017 03h57 PM

In the 3rd quarter of 2017, the compound labor underutilization rate (which gathers unemployment, time-related underemployment and potential work force) stood at 23.9%, which represents 26.8 million persons. In the 2nd quarter of 2017, for Brazil, the rate was 23.8% and, in the 3rd quarter of 2016, it had been 21.2%. The highest rates by Federation Units were seen in Bahia (40.1%), Piauí (38.5%) and Maranhão (37.0%) and the lowest, in Santa Catarina (10.9%), Mato Grosso (14.8%) and Rondônia (15.5%).

The combined rate of time-related underemployment (employed persons working less than 40 hours per week, but that would like to work for longer hours, plus the unemployed) was of 18.5%, equivalent to 19.2 million persons. In the 2nd quarter of 2017, for Brazil, this rate was of 18.6% and in the 3rd quarter of 2016, of 16.5%. In the 3rd quarter of 2017, the greatest rates were seen in the following Federation Units: Bahia (30.8%), Piauí (27.7%), Sergipe (25.2%), Maranhão (24.9%) and Pernambuco (24.5%) , while the lowest were found in Santa Catarina (8.9%), Mato Grosso (12.0%), Rondônia (12.2%), Mato Grosso do Sul (12.8%), Paraná (13.0%) and Rio Grande do Sul (13.0%).

The combined rate of unemployment and potential work force, which comprises the unemployed persons and those that would like to work , but did not seek for a job, or those who sought it, but were not available to work (potential work force) was of  18.3%, representing 20.5 million persons. In the 2nd quarter of 2017, for Brazil, this rate was of 18.5% and in the 3rd quarter of 2016, of 16.8%. Alagoas (28.7%), Maranhão (28.2%), Bahia (27.9%) and Pernambuco (27.1%) were the states with the highest combined rates of unemployment and potential work force. The lowest ones were seen in Santa Catarina (8.8%), Rio Grande do Sul (10.9%) and Paraná (12.0%).

The unemployment rate in the 3rd quarter of 2017 (12.4% in Brazil) presented a reduction of 0.6 percentage points in comparison with the 2nd quarter of 2017 (13.0%), and an increase of 0.6 percentage points over the 3rd quarter of 2016 (11.8%). In the comparison with the 2nd quarter of 2017, there was decrease of this indicator in almost all the Major Regions: South (from 8.4% to 7.9%) and Central-West (from 10.6% to 9.7%). The Northeast Region (14.8%), despite the drop in the quarterly comparison, remained recording the greatest unemployment rate among all Regions. In the annual comparison, the rate stood stable in the South and Central-West Regions.

The usual real average earnings of the employed persons estimated in Brazil (R$2,115) presented stability in relation to both the previous quarters  (R$2,108) and the same quarter a year ago (R$2,065).

In the comparison among the Major Regions, from the 2nd quarter of 2017 to the 3rd quarter of 2017, there was statistical stability of the average earnings in all the Regions. In relation to Q3 of 2016, the North (R$1,640) and Northeast Regions (R$1,439) had expansion in earnings, whereas the others remained stable.

The usual real average wage bill of the employed (R$188.1 billion for the country as a whole) registered growth of 1.4% in relation to the previous quarter. The South Region recorded R$97,234 million in the 3rd quarter of 2017. In the comparison with the 2nd quarter of 2017, just the South Region had a statistically significant growth in the wage bill. In relation to the 3rd quarter of the previous year, the North, South and Central-West Regions recorded a statistically significant growth in the wage bill.

The complete publication of the Continuous PNAD, with the data released today and the summary tables by Federation Units, is available here.The main results for Brazil as a whole had already been disclosed on 10/10/2017.

The present release makes available the indicators of labor underutilization for the 3rd quarter of 2017, as well as all information divided into regions and details on the main indicators of the labor market by sex, age and schooling.

Unemployment rate down in Northeast, South and Central-West against Q2 2017

In the third quarter of 2017, the unemployment rate, in Brazil, was estimated at 12.4%. It retreated 0.6 percentage points in relation to the previous quarter of the same year (13.0%). When compared to the 3rd quarter of 2016 (11.8%), the rate increased 0.6 percentage points.

The regional approach showed different levels for the unemployment rate along all the analyzed quarters. The Northeast Region remained with the highest unemployment rates throughout the whole series, having recorded, in the 3rd quarter of 2017, a rate of 14.8%; whereas the South Region had the lowest one, 9.7%.

Except for the South and Southeast Regions, which had statistical stability in this indicator in relation to the 2nd quarter of 2017, the Northeast (14.8%), the South (7.9%) and the Central-West Regions (9.7%) had a decrease in the unemployment rate.  In the annual comparison, North, Northeast and Southeast increased their unemployment rates.

Federation Units Q3 2017
Mato Grosso 9.4
Amazonas 16.0
Tocantins 11.8
Minas Gerais 12.3
Maranhão 14.4
Pará 11.1
São Paulo 13.2
Espírito Santo 13.0
Paraná 8.5
Rio Grande do Sul 8.0
Amapá 16.6
Sergipe 13.6
Paraíba 10.8
Federal District 12.3
Santa Catarina 6.7
Rondônia 8.1
Bahia 16.7
Pernambuco 17.9
Mato Grosso do Sul 7.9
Rio de Janeiro 14.5
Ceará 11.8
Acre 13.5
Piauí 12.0
Goiás 9.2
Roraima 8.9
Rio Grande do Norte 13.7
Alagoas 15.9

Contingent of blacks and browns increases in the unemployed population between 2012 and 2017

The unemployed contingent in Brazil in the 3rd quarter of 2017 was of 13.0 million persons, with the contribution of browns at 52.6%, whereas whites' stood at 35.6% and blacks' rose to 11.1%. In the 3rd quarter of 2012, the browns represented 51.9% of this population, followed by the whites, 38.3% and blacks, 9.3%.

North and Northeast have highest percentages of employed population in the lowest schooling levels

In the 3rd quarter of 2017, in Brazil, among the employed persons, the survey showed that 27.4% had not finished primary school, 57.3% had finished at least high school and 18.9% had an university degree.

The analysis pointed out an unbalanced picture at the regional level. In the North (34.7%) and Northeast (35.7%), the percentage of persons in the lowest education levels (incomplete primary education) was higher than that of the other regions. In the Southeast (62.8%) and South (56.4%), the percentage of persons at working age that had finished at least the secondary education was above that 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 (14.1%).

Northeast has the lowest employment-population ratio

In the 3rd quarter of 2017, the employment-population ratio in Brazil was estimated at 54.1%. This indicator remained stable in the comparison with the same quarter of 2016.

In the regional scenario, different levels of employment-population ratios were recorded. The South (59.4%) and Central-West (59.3%) were the ones with the greatest percentages of employed persons in the working-age population. The Northeast Region recorded the lowest employment-population ratio (46.6%).

The employment-population ratio in Brazil was estimated at 64.1% for men and at 45.0% 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 (23.4 percentage points), and the South Region, with the lowest one (18.0 percentage points).

Northeasters, women and browns are the majority in the workforce

In the 3rd quarter of 2017, in Brazil, 38.2% of the persons at working age were classified as out of the workforce (64.5 million), that is, those who were neither employed nor unemployed in the week of reference of the survey.

The Northeast Region registered the highest share of persons out of the workforce (45.3%). The Southeast (35.1%), South (35.5%) and Central-West Regions (34.3%) recorded the lowest percentages. It is worth mentioning that the results did not vary much along the available time series.

The population out of the workforce was made up of a majority of women. In the 3rd quarter of 2017, they represented 65.1%, repeating the trend of the available time series.

In the 3rd quarter of 2017, browns were the majority in the population out of the workforce (48.0%), followed by the whites (43.2%) and blacks (7.9%). Against 2012, there was a trend of decrease in the proportion of white self-declared persons and an increase in the black and brown ones.