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Quarterly continuous PNAD: unemployment remains stable in 21 of the 27 Federation Units

November 14, 2018 09h00 AM | Last Updated: November 14, 2018 06h32 PM

The unemployment rate in Brazil was 11.9%. In 21 of the 27 Federation Units, the unemployment rate remained stable against the result of the second semester of 2018. The only Federation Unit recording increase (2.3 percentage points) was Roraima (from 11.2 to 13.5%). The decreases occurred in Mato Grosso (-1.8 percentage points), Tocantins (-1.6 percentage points), Minas Gerais (-1.1 percentage points), Ceará (-1.1 percentage points) and Rio de Janeiro (-0.8 percentage points). In Q3 2018, the biggest unemployment rates among the Federation Units were: Amapá (18.3%), Sergipe (17.5%) and Alagoas (17.1%). The lowest unemployment rates were recorded in Santa Catarina (6.2%), Mato Grosso (6.7%) and Mato Grosso do Sul (7.2%).

In Q3 2018, the underutilization rate of the workforce (which includes the unemployed, the underemployed due to insufficient working hours and the potential workforce) was 24.2%, which represents 27.32 million persons. Piauí (39.9%), Maranhão (38.8%) and Bahia (38.5%) recorded the biggest underutilization rates and the lowest rates were those of Santa Catarina (11.2%), Mato Grosso (14.3%), Rio Grande do Sul (15.5%).

The number of discouraged persons in Q3 2018 was 4.78% million persons aged 14 and over, a stable figure in comparison with that of the 2nd semester of 2018 (4.83 million, the biggest number of discouraged persons in the Continuous PNAD time series). There was increase of 12.6% against Q3 2017, when there were 4.24 million discouraged persons. The biggest number of persons were in Bahia (794 thousand) and in Maranhão (523 thousand) and the smallest ones in Roraima and in Amapá, with 12 and 11 thousand persons, respectively.

The percentage of discouraged persons (in relation to the workforce or the discouraged population), in Q3 2018 was 4.3%, having remained stable in relation to the previous quarter (4.4%, the highest rate in the time series). Among the Federation Units, Maranhão (16.6%) and Alagoas (16.0%) had the highest discouragement rates and Rio de Janeiro (1.2%) and Santa Catarina (0.8%), the lowest.

In the private sector, 74.1% of the employees had a formal employment contract (with stability against Q3 2017). The smallest percentages of employees with a formal contract in the private sector were in the Northeast (58.7%) and North Region (60.7%); the biggest percentage was in the South (83.4%). The Federation Units with the biggest percentages were Santa Catarina (88.4%), Rio Grande do Sul (82.8%) and São Paulo (81.1%), and the smallest were those of Maranhão (51.1%), Piauí (54.1%) and Paraíba (54.9%).

In Q3 2018, the number of employees in the private sector without a formal contract increased 4.7% against the previous quarter, with an increase of up to 22 thousand persons. Against Q3 2017, there was increase of 5.5% (601 thousand persons). Among the Federation Units, the biggest proportions were those of Maranhão (48.9%), Piauí (45.9%) and Paraíba (45.1%), and the smallest were those of Santa Catarina (11.6%), Rio Grande do Sul (17.2%) and São Paulo (18.9%).

In Q3 2018, a total 92.6 million persons were employed, being 67.5% with a job (including domestic workers), 4.8% were employers, 25.4% were self-employed persons, and 2.4% contributing family workers. The North (32.4%) and Northeast (29.0%) recorded the biggest percentages of sel-employed employees. In the Federation Units, the biggest percentages were those of Pará (34.6%), Maranhão (33.8%) and Amazonas (33.0%), whereas the lowest percentages were those of the Federal DIstrict (19.4%), São Paulo (21.4%) and Santa Catarina (22.1%).

The support material for Continuous PNAD can be found on the right.

 

Amapá recorded the highest unemployment rate in Q3 2018

In Brazil, the unemployment rate in Q3 2018 was 11.9%. That indicator recorded a decrease in comparison with Q2 2018 (12.4%) and Q3 2017 (12.4%).

Throughout the series, the Northeast has had the highest unemployment rates, having recorded, in Q3 2018, 14.4%. The South Region had the lowest rate (7.9%). Against Q2 2018, the Southeast Region (from 13.2% to 12.5%) and the Central West (from 9.5% to 8.9%) recorded decrease in unemployment rate. 

The highest unemployment rates in Q3 2018, among the Federation Units, were: Amapá (18.3), Sergipe (17.5%) and Alagoas (17.1%). The lowest unemployment rates were those of Santa Catarina (6.2%), Mato Grosso (6.7%) and Mato Grosso do Sul (7.2%).

Unemployment R=rate of persons 14 years of age and over, by Federation Units - Q3 2018  
Santa Catarina 6.2
Mato Grosso 6.7
Mato Grosso do Sul 7.2
Rio Grande do Sul 8.2
Rondônia 8.6
Paraná 8.6
Goiás 8.9
Minas Gerais 9.7
Tocantins 9.8
Ceará 10.6
Paraíba 10.7
Pará 10.9
Espirito Santo 11.2
Brasil 11.9
Piauí 12.3
Federal District 12.6
Rio Grande do Norte 12.8
Acre 13.1
Amazonas 13.1
São Paulo 13.1
Roraima 13.5
Maranhão 13.7
Rio de Janeiro 14.6
Bahia 16.2
Pernambuco 16.7
Alagoas 17.1
Sergipe 17.5
Amapá 18.3
Source: PNAD Contínua    

Pará, Maranhão and Amazonas have most self-employed persons

the employed population, in Q3 2018, estimated at 92.6 million persons, was formed by 67.5% of employees (including domestic workers), 4.8% of employers, 25.4% of persons who were self-employed persons and 2.4% of contributing family workers.

In the North Regions (32.4%) and Northeast (29.0%), the percentage of self-employed workers was higher than in the other regions. By Federation Units, the biggest percentages of self-employed persons were those of Pará (34.6%), Maranhão (33.8%) and Amazonas (33.0%), whereas the lowest rates were registered by the Federal District (19.4%), São Paulo (21.4%) and Santa Catarina (22.1%).

Percentage of persons 14 year of age and over, self-employed, by Federation Units - Q3 2018  
Federal District 19.4
São Paulo 21.4
Santa Catarina 22.1
Minas Gerais 22.9
Mato Grosso do Sul 23.1
Espírito Santo 24.1
Rio Grande do Sul 24.5
Rio Grande do Norte 24.5
Paraná 25.1
Mato Grosso 25.4
Goiás 25.5
Alagoas 26.0
Roraima 26.3
Tocantins 26.8
Rio de Janeiro 27.2
Paraíba 27.8
Pernambuco 27.9
Ceará 28.7
Sergipe 28.8
Rondônia 29.2
Acre 29.4
Bahia 29.4
Amapá 31.5
Piauí 31.9
Amazonas 33.0
Maranhão 33.8
Pará 34.6
Source: PNAD Contínua    

 

Santa Catarina has the smallest percentage of persons without a formal contract (11,6%)

In Q3 2018, the number of employees without a formal contract in the private sector increased 4.7% in relation to the previous quarter, an increment of 522 thousand persons. In comparison with Q3 2017, there was increase of 5.5% (601 thousand persons). Among the Federation Units, the biggest proportions were those of Maranhão (48.9%), Piauí (45.9%) and Paraíba (45.1%), and the smallest increases were those of Santa Catarina (11.6%), Rio Grande do Sul (17.2%) and (18.9%).

Proportion of employees in the private sector (except domestic employees) without a formal employment contract - Ranking in Q3 
UF Q3 2018 
Santa Catarina 11.6
Rio Grande do Sul 17.2
São Paulo 18.9
Federal District 19.2
Paraná 19.6
Rio de Janeiro 20.0
Mato Grosso 22.0
Mato Grosso do Sul 22.1
Brasil 25.9
Minas Gerais 27.0
Goiás 28.1
Espírito Santo 28.2
Amazonas 32.1
Amapá 33.0
Rondônia 34.1
Pernambuco 34.6
Alagoas 35.0
Tocantins 37.6
Acre 37.7
Rio Grande do Norte 38.6
Sergipe 39.9
Roraima 42.2
Ceará 42.4
Bahia 42.5
Pará 44.8
Paraíba 45.1
Piauí 45.9
Maranhão 48.9
Source: Pnad Contínua    

Maranhão has the smallest percentage of employees with a formal employment contract (51.1%)

In Q3 2018, 74.1% of the employees in the private sector had a forma contract, against 75.3% in Q3 2017, with a difference of - 327 thousand persons. The Northeast (58.7%) and the North Region (60.7%) had the smallest percentages and the South Region (83.4%), the biggest. Among domestic workers, 28.9% had a forma employment contract. In the same quarter last year, the proportion was 29.7%.

The Federation Units accounting for the biggest percentages were Santa Catarina (88.4%), Rio Grande do Sul (82.8%) and São Paulo (81.1%), and for the smallest ones were Maranhão (51.1%), Piauí (54.1%) and Paraíba (54.9%).

Percentage of employees with a formal contract in the private sector in relation to employees in the private sector (except domestic workers), by Federation Units - Q3 2018 
Maranhão 51.1
Piauí 54.1
Paraíba 54.9
Pará 55.2
Bahia 57.5
Ceará 57.7
Roraima 57.8
Sergipe 60.1
Rio Grande do Norte 61.4
Acre 62.3
Tocantins 62.4
Alagoas 65.2
Pernambuco 65.4
Rondônia 65.9
Amazonas 67.7
Amapá 68.0
Espírito Santo 71.8
Goiás 71.9
Minas Gerais 73.0
Mato Grosso do Sul 77.9
Mato Grosso 78.0
Rio de Janeiro 80.0
Paraná 80.4
Federal District 80.8
São Paulo 81.1
Rio Grande do Sul 82.8
Santa Catarina 88.4
Source: PNAD Contínua    

 

Women have a lower employment-population ratio than men

In Q3 2018, women were the majority both in the working-age population in Brazil (52.3%), and in all the Major Regions. However, among the employed persons, there was a predominance of men in Brazil (56.3%) and in all the Major Regions, mainly in the North, where men accounted for 60.2%.

The employment-population ratio among men in Brazil was 64.3% an, among women, 45.4%, in Q3 2018. The differences between the indicators for men and women was observed in the five Major Regions, the main highlights being the North, with the biggest difference (22.5 percentage points), and the Southeast, with the smallest difference (18.2 percentage points).

In the unemployed population, in Q3 2018,  women were the majority (51.1%). In almost all the Major Regions, the percentage of women in the unemployed population was above that of men. The exception was the Northeast Region (47.7%). In the Central West Region, the percentage of women was the biggest: they made up 54.4% of the unemployed persons. 

The unemployed rate in Brazil, in Q3 2018, was 11.9%, with significant differences between men (10.5%) and women (13.6%). This behavior was observed in the five major Regions. Women also remained as the biggest part of the population out of the workforce, both in the country (66.2%) and in all the Major Regions.

Unemployment rate for black and brown persons surpasses national rate 

The number of unemployed persons in Brazil in Q1 2012 was 7.6 million persons, and the brown population amounted to 48.9% of that group, followed by white persons (40.2%) and black ones (10.2%). In Q3 2018, that number increased to 12.5 million persons and the participation of brown persons increased to 52.2%; that of white persons decreased to 34.7% and that of black persons increased to 12.0%.

The unemployment rate of self-declared white persons (9.4%) in Q3 2018 was below the nationa average (11.9%). Nevertheless, the rate for blacks (14.6%) and browns (13.8%) were higher. In Q1 2012, when the average rate had been estimated at 7.9%, that of black persons corresponded to 9.7%; of brown persons,  to 9.1% and to white persons, to 6.6%.

In Q3 2018, brown persons made up 47.9% of the population out of the workforce, followed by white persons (42.5%) and black ones (8.4%).

Average earnings remained stable in all the Major Regions 

In Q3 2018, the average earnings from all the activities, usually earned per month, by persons aged 14 and over employed in the week of reference with earnings from work, was estimated at R$ 2,222. There was stability both in relation to the previous quarter (R$ 2,229) and in relation to the same quarter in the previous year (R$ 2,208). In the Major Regions, there was also stability in both comparisons. 

Other underutilization measures 

The discouraged population is defined as that out of the workforce due to one of the following reasons: they could not find proper work, or had no experience or qualification; or were considered too young or old, or there was no job near their place of residence - and, in case they had found a job, they would be able to hold the position. These people are part of the potential workforce. 

The number of discouraged ones in Q3 2018 was 4.78 million persons aged 14 and over, a stable figure against that in Q2 2018 (4.83 million, the biggest number of discouraged persons in the Continuous PNAD time series. There was increase of 12.6% versus Q3 2017, when there were 4.24 discouraged persons. The main figures were those of Bahia (794 thousand persons) and in Maranhão (523 thousand) and the smallest ones in Roraima and Amapá, with 12 and 11 thousand persons, respectively. 

The percentage of discouraged persons (in comparison with the population out of the workforce), in Q3 2018, was 4.3%, being stable against the previous quarter (4.4%, the biggest rate in the time series). Among the Federation Units, Maranhão (16.6%) and Alagoas (16.0%) had the highest discouragement rates and Rio de Janeiro (1.2%) and Santa Catarina (0.8%), the lowest.

The combined rate of underemployment due to insufficient working hours and unemployment (employed persons working a number of hours below 40, but who would like to work longer hours, together with unemployed persons) was 18.4% in Brazil, in Q3 2018. That means 6.9 million underemployed persons due to insufficient hours and 12.5 million unemployed. By Federation Unit, the highest rates were those of Sergipe (29.9%), Piauí (29.8%) and Bahia (29.0%) and the lowest, Santa Catarina (8.9%), Mato Grosso (10.7%) and Rondônia (12.1%).

The combined rate of unemployment and potential workforce, which encompasses the unemployed and persons who would like to work, but did not look for a job, or looked for a job, but were not available to work (potential workforce), was 18.1% in Q3 2018, or 20.5 million persons. Alagoas (32.4%), Maranhão (30.8%) and Bahia (27.3%) recorded the highest rates; the lowest were those of Santa Catarina (8.5%), Mato Grosso (10.5%) and Rio Grande do Sul (10.9%).