The Brazilian unemployment rate was 7.4% in the fourth quarter of 2023, dropping 0.3 percentage points (pp) in relation to the quarter from July to September 2023 (7.7%) and 0.5 pp against the same quarter in 2022 (7.9%).

Compared with the previous quarter, the unemployment rate decreased in two Federation Units, remained stable in 23 and grew in two of them.

The drops were registered in Rio de Janeiro (from 10.9% to 10.0%) and in Rio Grande do Norte (from 10.1% to 8.3%), whereas the rate increased in Rondônia (from 2.3% to 3.8%) and in Mato Grosso (from 2.4% to 3.9%).

In the fourth quarter of 2023, the highest unemployment rates were in Amapá (14.2%), Bahia (12.7%) and Pernambuco (11.9%). The lowest rates were in Santa Catarina (3.2%), Rondônia (3.8%) and Mato Grosso (3.9%).

The unemployment rate by sex was 6.0% among men and 9.2% among women in the fourth quarter of 2023. The unemployment rate by color or race was below the national average among white persons (5.9%) and above average for black (8.9%) and brown persons (8.5%).

The unemployment rate among persons with incomplete secondary school education (13.0%) surpassed the rates of the other levels of schooling.  Among persons with incomplete higher education, the rate was 7.6%, more than twice as that registered for complete higher education (3.6%).

In the fourth quarter of 2023, the composite underutilization rate (percentage of unemployed persons, time-related underemployed persons, and those in the potential workforce in relation to the extended workforce) was 17.3%.   Piauí (37.2%) recorded the highest rate, followed by Bahia (32.8%) and Sergipe (30.8%), all of them above 30%.

The lowest rates were in Santa Catarina (6.0%), Rondônia (7.0%) and Mato Grosso do Sul (9.2%).

The percentage of discouraged persons (against the population in the workforce or discouraged population) was 3.1% in the fourth quarter of 2023. Piauí (12.0%), Maranhão (11.7%) and Alagoas (9.9%) reported the highest percentages and Santa Catarina (0.4%) and Rondônia (0.7%), the lowest ones.

As for the duration of job search, 22.3% of the unemployed population had been searching for work for 2 years or more. This percentage was 22.2% in the third quarter of 2023 and 25.6% in the fourth quarter of 2022. On the other hand, 19.9% of the unemployed population had been searching for work for less than one month.  This proportion was 19.5% in the third quarter of 2023 and 19.3% in the fourth quarter of 2022.

The percentage of workers with a formal contract was 73.7% of those employed in the private sector.  The highest percentages were in Santa Catarina (88.2%), Rio Grande do Sul (81.9%) and Paraná (81.7%). The lowest ones were in Maranhão (48.9%), Piauí (51.6%) and Paraíba (54.9%).

The percentage of the employed population in Brazil working for themselves was 25.4%. The highest percentages were in Rondônia (32.9%), Maranhão (31.3%) and Amazonas (30.5%) and the lowest ones were in Mato Grosso do Sul (20.5%), Tocantins (20.6%) and Federal District (21.2%).

The informality rate for Brazil was 39.1% of the employed population.  The highest rates were in Maranhão (57.8%), Pará (57.4%) and Amazonas (54.6%) and the lowest ones, in Santa Catarina (27.6%), Federal District (30.4%) and São Paulo (31.2%).

Unemployment rates retreated in two FUs against the previous quarter

Compared with the previous quarter, the unemployment rate dropped only in Rio de Janeiro (from 10.9% to 10.0%) and in Rio Grande do Norte (from 10.1% to 8.3%), grew in Rondônia (from 2.3% to 3.8%) and in Mato Grosso (from 2.4% to 3.9%) and remained stable in the other states. The highest rates were registered in Amapá (14.2%), Bahia (12.7%) and Pernambuco (11.9%). The lowest rates were in Santa Catarina (3.2%), Rondônia (3.8%) and Mato Grosso (3.9%).

Unemployment rate of persons aged 14 and over, by Federation Unit,
against the previous moving quarter (%) - Q4 2023

PI records the highest underutilization rate (37.2%) and SC, the lowest (6.0%)

In the fourth quarter of 2023, the composite underutilization rate (percentage of unemployed persons, time-related underemployed persons, and those in the potential workforce in relation to the extended workforce) was 17.3%. The highest rates were in Piauí (37.2%), Bahia (32.8%) and Sergipe (30.8%). The lowest rates were in Santa Catarina (6.0%), Rondônia (7.0%) and Mato Grosso do Sul (9.2%).

Composite underutilization rate of the workforce by FU (%) - Q4 2023

RO records highest proportion of self-employed workers (32.9%) and MS, the lowest (20.5%)

The percentage of the employed population working for themselves was 25.4%. The highest percentages were in Rondônia (32.9%), Maranhão (31.3%) and Amazonas (30.5%) and the lowest ones were in Mato Grosso do Sul (20.5%), Tocantins (20.6%) and Federal District (21.2%).

Percentage of self-employed persons, by Federation Unit (%) - Q4 2023

MA has lowest percentage of workers with a formal contract (48.9%) and SC, the highest (88.2%)

In the fourth quarter of 2023, 73.7% of the workers in the private sector had signed a formal contract.  Among the Federation Units, the highest percentages were those of Santa Catarina (88.2%), Rio Grande do Sul (81.9%) and Paraná (81.7%). The lowest ones were in Maranhão (48.9%), Piauí (51.6%) and Paraíba (54.9%).

Percentage of employed persons WITH  a formal contract in the private sector,
 by FU (%) - Q4 2023

Average earnings increase only in the North against the previous quarter

In the fourth quarter of 2023, the real average earnings from all jobs, usually received by persons aged 14 and over, employed in the week of reference, with income from work, was estimated at R$ 3.032. This result remained stable against the quarter from July to September 2023 (R$3,007) and grew 3.1% in relation to the same quarter a year ago (R$2,940).

In the comparison between the third and fourth quarters of 2023, only the North Region (R$2,419) grew and the others reported a statistical stability. Average earnings grew in the North, Northeast and Southeast in relation to the fourth quarter of 2022, whereas the other regions remained stable.

The real wage bill from all jobs, usually earned per month by persons aged 14 and over, employed in the week of reference, with income from work, was estimated at R$301.6 billion. When compared with the moving quarter from July to September 2023, it grew 2.1% or more R$6.1 billion.  Against the same quarter in 2022, it increased 5.0%, with an increase of R$14.4 billion in the wage bill.

MA has the highest informality rate (57.8%) and Santa Catarina, the lowest one (27.6%)

In the fourth quarter of 2023, the informality rate stayed at 39.1% of the employed population.  The highest rates were in Maranhão (57.8%), Pará (57.4%) and Amazonas (54.6%) and the lowest ones, in Santa Catarina (27.6%), Federal District (30.4%) and São Paulo (31.2%).

The calculation of informality rate of the employed population considers the following groups:  Workers in the private sector without a formal contract. Domestic worker without a formal contract; Worker without a CNPJ registry; Self-employed worker without a CNPJ registry; Auxiliary family worker.

Informality rate of the employed population, by FU (%) - Q4 2023

Nearly 22.3% of the unemployed persons looked for a job for two years or more

In the fourth quarter of 2023, the Continuous PNAD showed that nearly 22.3% of the unemployed population was searching for work for at least two years.  This percentage had been 25.6% in the fourth quarter of 2022.

On the other hand, 19.9% of the unemployed population had been searching for work for less than one month. The proportion was 19.3% in the fourth quarter a year ago.