The unemployment rate was 11.6% in Brazil, 0.3 percentage points below that of the previous quarter (11.9%). Taking into account the statistically-significant changes, the rate dropped in six out of the 27 Federation Units in relation to the third quarter of 2018. On the other hand, the rate increased only in Bahia (1.2 p.p.), changing from 16.2% to 17.4%. The drops were registered in Sergipe (-2.5 p.p.), Pernambuco (1.2 p.p.), Espírito Santo (-1.0 p.p.), Rio Grande do Sul
(-0.8 p.p.), Paraná (-0.8 p.p.) and São Paulo (-0.7 p.p). In the fourth quarter of 2018, the highest unemployment rates among the Federation Units were recorded in Amapá (19.6%), Bahia (17.4%) and Alagoas (15.9%). The lowest unemployment rates were reported in Santa Catarina (6.4%) Mato Grosso (6.9%) and Mato Grosso do Sul (7.0%). Among the regions, only the South remained stable in this comparison (drop from 7.9% to 7.3%).

Conversely, the annual average unemployment rate fell in 18 out of the 27 Federation Units in relation to 2017. The drops were posted in Mato Grosso (-1.1 p.p.), Tocantins (-1.1 p.p.), Minas Gerais (-0.5 p.p.), Ceará (-1.3 p.p.), Goiás (-1.4 p.p.), Mato Grosso do Sul (-0.9 p.p.), Rio Grande do Sul (-0.3 p.p.), Santa Catarina (-0.7 p.p.), Paraná (-0.2 p.p.), São Paulo (-0.1 p.p.), Espírito Santo (-1.6 p.p.), Pernambuco (-1.0 p.p.), Paraíba (-0.3 p.p.), Rio Grande do Norte (-0.9 p.p.), Piauí (-0.1 p.p.), Pará (-0.7 p.p.), Amazonas (-1.8 p.p.) and Acre (-0.6 p.p.).  The highest annual average rates among the Federation Units were: Amapá (20.2%), Alagoas (17.0%) Pernambuco (16.7%) and Sergipe (16.6%). The lowest rates were reported in Santa Catarina (6.4%) Mato Grosso do Sul (7.6%) and Mato Grosso (7.9%).

In the second quarter of 2018, the labor underutilization rate – which gathers the unemployed, time-related underemployed and the potential workforce – was 23.9%, which represented 26.96 million persons. Piauí (41.4%), Bahia (39.6%) and Maranhão (38.4%) registered the highest underutilization rates and the lowest ones were in Santa Catarina (11.2%), Mato Grosso (14.3%) and Rio Grande do Sul (15.5%).

Nevertheless, the annual average rate was 24.4%, which represented 27.4 million persons. Piauí (40.4%), Bahia (39.6%) and Maranhão (38.6%) recorded the highest annual average underutilization rates and the lowest ones were in Santa Catarina (10.9%), Mato Grosso (15.1%) and Rio Grande do Sul (15.1%).

The contingent of discouraged persons was of 4.70 million persons aged 14 years and over in the fourth quarter of 2018, a value stable in relation to the third quarter of 2018 (4.78 million). It increased 8.1% over the fourth quarter of 2018, when they were 4.35 million discouraged persons. The largest contingents were in Bahia (804 thousand persons) and Maranhão (512 thousand) and the smallest ones in Roraima and Amapá, with 10 and 11 thousand persons, respectively.

On its turn, the annual average rate was 4.73 million persons aged 14 years and over in 2018, a value 13.4% higher than that of 2017 (4.17 million). The largest contingents were in Bahia (820 thousand persons) and Maranhão (492 thousand) and the smallest ones in Roraima and Amapá, with 12 and 13 thousand persons, respectively.

The percentage of discouraged persons– in relation to the  workforce or discouraged population – was estimated at 4.3% in the fourth quarter of 2018, stable  in relation to the previous quarter (4.3%). Among the Federation Units, Maranhão (16.2%) and Alagoas (15.7%) posted the highest discouragement rates, and Rio de Janeiro (1.0%) and Santa Catarina (0.8%), the lowest ones.

Nevertheless, the annual average rate stayed at 4.3%, a rate 12.3% higher than that of 2017 (3.9%). Among the Federation Units, Alagoas (16.4%) and Maranhão (15.7%) posted the highest discouragement rates, and Rio de Janeiro (1.1%) and Santa Catarina (0.8%), the lowest ones.

74.1% of those employed in the private sector in Brazil had a formal contract. The lowest percentages of employed persons with a formal contract in the private sector were in the Northeast (59.9%) and North (61.9%) Regions; the highest one was in the South (82.9%). The FUs with the highest percentages were Santa Catarina (86.8%), Rio Grande do Sul (82.0%) and São Paulo (80.3%), and the lowest ones in Maranhão (50.6%), Piauí (52.2%) and Pará (53.6%).

In the fourth quarter of 2018, the number of persons employed in the private sector without a formal contract stayed at 11.5 million, stable (change of 0.3%) in relation to the previous quarter, with a rise of 31 thousand persons. Compared with the fourth quarter of 2017, this increase was of 3.8% (427 thousand persons). Among the FUs, the highest proportions were registered in Maranhão (49.4%), Piauí (47.8%) and Pará (46.4%), and the lowest ones in Santa Catarina (13.2%), Rio Grande do Sul (18.0%) and São Paulo (19.7%). The annual average rate of this population stayed at 11.2 million persons. It rose 4.5% over 2017 (482 thousand persons). Among the FUs, the highest proportions in the annual average rate were recorded in Mato Grosso (54.0%), Goiás (52.8%) and Maranhão (49.2%), and the lowest ones were in Santa Catarina (12.0%), Rio Grande do Sul (17.6%) and São Paulo (18.6%).

Estimated at 93.0 million persons in the fourth quarter of 2018, the employed population comprised  67.1% of employees – including domestic workers –, 4.9% of employers, 25.6% of self-employed workers and 2.3% of assisting family workers. The North (33.2%) and Northeast (29.0%) Regions registered the highest percentages of self-employed workers. Among the FUs, the highest percentages were in Pará (35.1%), Amazonas (34%) and Maranhão (33.2%), whereas the lowest ones were in the Federal District (20.4%), São Paulo (21.5%) and Santa Catarina (21.8%).

The annual average rate was 91.8 million persons employed. Among them, 25.4% were self-employed persons. Among the FUs, the highest percentages were in Pará (34.8%), Maranhão (33.4%) and Amazonas (33.0%), whereas the lowest ones were in the Federal District (18.9%), São Paulo (21.4%) and Santa Catarina (22.2%).

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

Amapá, highest unemployment rate in Q4 2018

In Brazil, the unemployment rate was 11.6% in the fourth quarter of 2018. This indicator retreated in relation to the third quarter of 2018 (11.9%) and fourth quarter of 2017 (11.8%). In general, the highest unemployment rates were reported in the states of the Northeast Region, and the lowest ones, in those of the South Region.

In the fourth quarter of 2018, the highest unemployment rates among the Federation Units were recorded in Amapá (19.6%), Bahia (17.4%) and Alagoas (15.9%). The lowest unemployment rates were reported in Santa Catarina (6.4%) Mato Grosso (6.9%) and Mato Grosso do Sul (7.0%).

Pará, Maranhão and Amazonas have more self-employed workers

Estimated at 93.0 million persons, the employed population in the fourth quarter of 2018 comprised  67.1% of employees – including domestic workers –, 4.9% of employers, 25.6% of self-employed workers and 2.3% of assisting family workers.

In the North (33.2%) and Northeast Regions (29.0%), the percentage of self-employed workers was higher than those reported in the other regions. Regarding the Federation Units, the highest percentages of self-employed workers were in Pará (35.1%), Maranhão (33.2%) and Amazonas (34.0%), whereas the lowest ones were in the Federal District (20.4%), São Paulo (21.5%) and Santa Catarina (21.8%).

Santa Catarina, lowest percentage of workers without contract (13.2%)

In the fourth quarter of 2018, the number of persons employed in the private sector without a formal contract rose 0.3% over the previous quarter, an increase of 31 thousand persons. Compared with the fourth quarter of 2017, this increase was of 3.8% (427 thousand persons). Among the FUs, the highest proportions were registered in Maranhão (49.4%), Piauí (47.8%) and Pará (46.4%), and the lowest ones in Santa Catarina (13.2%), Rio Grande do Sul (18.0%) and São Paulo (19.7%). The annual average rate of this population stayed at 11.2 million persons. It rose 4.5% over 2017 (482 thousand persons).

Maranhão, lowest percentage of workers with formal contract (50.6%)

74.1% of those employed in the private sector had a formal contract in the fourth quarter of 2018, against 75.3% in the fourth quarter of 2017, a difference of -327 thousand persons. The Northeast (59.9%) and North (61.9%) Regions registered the lowest percentages and the South Region (82.9%), the highest one. Among the domestic workers, 28.4% had a formal contract. The proportion was 29.5% in the same quarter a year ago.

The FUs with the highest percentages of persons employed with a formal contract were Santa Catarina (86.8%), Rio Grande do Sul (82.0%) and São Paulo (80.3%), and the lowest ones were Maranhão (50.6%), Piauí (52.2%) and Pará (53.6%).

Women have lower employment-population ratio than men

In the fourth quarter of 2018, women were the majority both in the population at working age in Brazil (52.4%) and in all the Major Regions. Nevertheless, men prevailed among the employed persons in Brazil (56.1%) and in all the regions, especially in the North, in which men represented 60.2%.

The employment-population ratio of men in Brazil was 64.3% and of women, 45.6% in the fourth quarter of 2018. 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 (22.9 percentage points), and the Southeast Region, with the lowest one (17.7 percentage points).

Women were the majority (52.1%) of the unemployed population in the fourth quarter of 2018. The percentage of women in the unemployed population was higher than men´s in nearly all the Major Regions. The exception was the Northeast Region (49.1%). The percentage of women was the highest in the Central-West Region, representing 55.8% of the unemployed persons.

The unemployment rate in Brazil was 11.6% in the fourth quarter of 2018, though with significant differences between men (10.1%) and women (13.5%). Such behavior was noticed in the five Major Regions. Women remained as the most part of the population out of the workforce, both in Brazil (64.7%) and in all the regions.

Unemployment rate for black and brown persons is higher than national rate

The contingent of unemployed persons in the first quarter of 2012 in Brazil was of 7.6 million persons, in which the brown persons represented 48.9% of this population, followed by white (40.2%) and black (10.2%) persons. This contingent rose to 12.2 million persons in the fourth quarter of 2018, changing the share of brown persons to 51.7%, reducing that of white persons to 34.6% and increasing that of black persons to 12.9%.

The unemployment rate of those who self-declared as white persons (9.2%) in the fourth quarter of 2018 stood below the national average (11.6%). However, that of black (14.5%) and brown (13.3%) persons stood above it. While the average rate was estimated at 7.9% in the first quarter of 2012, that of black persons corresponded to 9.7%, brown persons, 9.1% and white persons, 6.6%.

In the fourth quarter of 2018, brown persons represented 47.4% of the population out of the workforce, followed by white (42.5%) and black (9.0%) persons.

Average earnings remain stable in all regions

In the fourth quarter of 2018, the usual real average earnings from all jobs of persons aged 14 and over, employed in the week of reference, with income from work, was estimated at R$2,254. It remained stable both in relation to the immediately previous quarter (R$2,237) and to the same quarter a year ago (R$2,241). The Major Regions also remained statistically stable in these two comparisons.

In the comparison between the third quarter of 2018 and the fourth quarter of 2018, the South Region (R$2,475) was the only one to register a statistically-significant expansion of the earnings, whereas the others remained stable. In relation to the fourth quarter of 2017, the average earnings remained statistically stable in all the regions.

Other measurements of underutilization

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 qualification, or was too young or old, or could not find a job in the locality where they lived – and that, if they could hold a job, they would be available to take over the job position. It is part of the potential workforce.

The contingent of discouraged persons was of 4.70 million persons aged 14 years and over in the fourth quarter of 2018, a value stable in relation to the third quarter of 2018 (4.78 million). It increased 8.1% over the third quarter of 2018, when they were 4.35 million discouraged persons. The largest contingents were in Bahia (804 thousand persons) and Maranhão (512 thousand) and the smallest ones in Roraima and Amapá, with 10 and 11 thousand persons, respectively.

The percentage of discouraged persons– in relation to the  workforce or discouraged population – was estimated at 4.3% in the fourth quarter of 2018, stable  in relation to the previous quarter (4.3%). Among the Federation Units, Maranhão (16.2%) and Alagoas (15.7%) posted the highest discouragement rates, and Rio de Janeiro (1.0%) and Santa Catarina (0.8%), the lowest ones.

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 18.2% in the fourth quarter of 2018 in Brazil, which represented 6.9 million time-related underemployed workers and 12.2 million unemployed persons. In terms of FUs, the highest rates were in Piauí (30.5%), Bahia (30.4%) and Sergipe (29.0%) and the lowest ones, in Santa Catarina (8.6%), Mato Grosso (11.0%) and Mato Grosso do Sul (11.3%).

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 17.7% in the fourth quarter of 2018, representing 20.0 million persons. Alagoas (30.7%), Maranhão (30.6%) and Bahia (28.4%) recorded the highest rate, whereas Santa Catarina (8.4%), Mato Grosso do Sul (9.9%) and Mato Grosso (10.2%) reported the lowest ones.