The unemployment rate increased in 10 Federation Units against the previous quarter. The other 17 FUs remained stable. The highest rises were in Paraíba (4.0 p. p.), Amapá and Pernambuco (3.8 p. p. each). On the other hand, the highest unemployment rates were registered in Bahia (20.7%), Sergipe (20.3%), Alagoas (20.0%) and Rio de Janeiro (19.1%) and the lowest ones in Santa Catarina (6.6%), Mato Grosso (9.9%), Paraná (10.2%) and Rio Grande do Sul (10.3%).

The unemployment rate in Brazil in the third quarter of 2020 was 14.6%, the highest one in the time series started in 2012, growing 1.3 percentage points (p.p.) over the quarter from April to June 2020 (13.3%) and 2.8 p.p. over the same quarter of 2019 (11.8%).

The unemployment rate was 12.8% for men and 16.8% for women. The rate of those who self declared white persons (11.8%) was lower than the national average, whereas those of the black (19.1%) and brown persons (16.5%) were higher. The age groups between 14 and 17 years (44.2%) and between 18 and 24 years (31.4%) remained with the highest rates.

In the third quarter of 2020, the composite rate of underutilization of the workforce - percentage of unemployed persons or time-related underemployed persons or persons in the potential workforce in relation to the extended workforce - was 30.3%. Alagoas (49.3%) recorded the highest rate, followed by Maranhão (47.1%), Sergipe (46.3%), Bahia and Piauí (45.9% both), all of them over 45%. The lowest rates were in Santa Catarina (12.7%) and Mato Grosso (18.7%), the only Federation Units below 20%.

The percentage of discouraged persons– in relation to the workforce or discouraged population – was 5.7% in the third quarter of 2020. Alagoas (21.6%) and Maranhão (20.8%) registered the highest percentages and Santa Catarina and the Federal District (1.3% both), the lowest ones.

The percentage of persons employed with a formal contract was 76.5% of those employed in the private sector. The highest percentages were in Santa Catarina (90.5%), Paraná (85.1%), Rio Grande do Sul (84.3%) and São Paulo (82.3%) and the lowest ones, in Maranhão (51.3%), Pará (53.9%) and Piauí (54.1%).

The percentage of the employed population in Brazil working as self-employed was 26.4%. The highest percentages were in Amapá (35.8%), Maranhão (34.1%), Amazonas (33.3%) and Rondônia (33.2%) and the lowest ones were in the Federal District (20.8%), São Paulo (22.4%), Mato Grosso do Sul (23.7%) and Minas Gerais (24.3%), the only FUs with percentages under 25%.

The informality rate for Brazil was 38.4% of the employed population. The highest rates were in Pará (60.9%), Maranhão (58.8%) and Amazonas (56.4%) and the lowest ones, in Santa Catarina (26.9%), the Federal District (28.6%) and São Paulo (29.1%).

BA, SE and AL registered the highest unemployment rates in Q3 2020

Besides Paraíba, whose unemployment rate rose 4.0 percentage points in relation to the previous quarter, nine more Federation Units increased, highlighted by Amapá and Pernambuco, both with 3.8 p.p. No Federation Unit dropped in this comparison and the remaining 17 FUs maintained the stability.

In relation to the same quarter of 2019, 23 Federation Units increased their unemployment rate, highlighted by Paraíba and Sergipe, both rising 5.6 p.p. and Alagoas and Rio de Janeiro, both rising 4.6 p.p. No Federation Unit dropped and four FUs remained stable: Amapá. Piauí, Tocantins and Pará.

Unemployment rate of persons aged 14 years and over, by FU,
against the previous moving quarter (%) - Q3 2020

FU	Q2 2020	Q3 2020	status
Paraíba	12.8	16.8
Pernambuco	15.0	18.8
Amapá	11.4	15.2
Acre	14.2	17.1
Rio de Janeiro	16.4	19.1
Alagoas	17.8	20.0
Ceará	12.1	14.1
Pará	9.1	10.9
Espírito Santo	12.3	13.9
São Paulo	13.6	15.1
Brazil	13.3	14.6
Rio Grande do Norte	15.0	17.3
Roraima	16.3	18.5
Rio Grande do Sul	9.4	10.3
Maranhão	16.0	16.9
Bahia	19.9	20.7
Rondônia	10.6	11.4
Paraná	9.6	10.2
Sergipe	19.8	20.3
Minas Gerais	12.9	13.3
Goiás	12.8	13.2
Amazonas	16.5	16.6
Piauí	12.7	12.8
Mato Grosso do Sul	11.4	11.5
Federal District	15.6	15.6
Mato Grosso	10.2	9.9
Santa Catarina	6.9	6.6
Tocantins	12.6	12.2

Women, youngsters and black persons have the highest unemployment rates

The analyses showed differences in the unemployment rate among men and women. In the third quarter of 2020, this rate was estimated at 12.8% for men and at 16.8% for women.

The rate of those who self declared white persons (11.8%) stood below the national average (14.6%), though those of the black persons (19.1%) and brown persons (16.5%) stood above it.

The unemployment rate for persons who had not finished high school (24.3%) was higher than that reported by other groups of level of schooling. The rate for the group of persons who had not finished higher education was estimated at 17.1%, more than twice the rate reported by those with complete higher education (7.0%).

The unemployment rates among the youngsters aged 14 to 17 (44.2%) and 18 to 24 (31.4%) registered a higher level in relation to the total average rate (14.6%).

AL has the highest underutilization rate (49.3%) and SC, the lowest one (12.7%)

In the third quarter of 2020, the composite underutilization rate of the workforce - percentage of unemployed persons or time-related underemployed persons or persons in the potential workforce in relation to the extended workforce - was 30.3%, representing an increase of 1.2 percentage points over the previous moving quarter (29.1%). Alagoas (49.3%) recorded the highest rate, followed by Maranhão (47.1%), Sergipe (46.3%), Bahia and Piauí (45.9% both), all of them over 45%. The lowest rates were in Santa Catarina (12.7%) and Mato Grosso (18.7%), the only Federation Units below 20%.

Composite underutilization rate of the workforce by FU (%) - Q3 2020

AP has the highest proportion of self employed workers (35.8%) and FD, the lowest one (20.8%)

The percentage of self employed persons in Brazil was 26.4% in the third quarter of 2020. Among the Major Regions, the highest percentages were in the North (32.1%) and Northeast (30.0%). The Federation Units with the highest percentages were Amapá (35.8%), Maranhão (34.1%), Amazonas (33.3%) and Rondônia (33.2%) and the lowest ones were in the Federal District (20.8%), São Paulo (22.4%), Mato Grosso do Sul (23.7%) and Minas Gerais (24.3%), the only FUs with percentages under 25%.

Percentage of self employed persons, by FU (%) - Q3 2020

Lowest percentage of workers with a formal contract is in MA (51.3%) and the highest, in SC (90.5%)

In the third quarter of 2020, 76.5% of the employees in the private sector had a formal labor record. The Northeast (62.0%) and North (61.0%) regions  registered the lowest percentages of this indicator. The highest percentages were in Santa Catarina (90.5%), Paraná (85.1%), Rio Grande do Sul (84.3%) and São Paulo (82.3%) and the lowest ones, in Maranhão (51.3%), Pará (53.9%) and Piauí (54.1%).

Percentage of employees WITH a formal contract among
the employees of the private sector, by FU (%) Q3 2020

Compared with the previous quarter, average earnings grow only in RS and SP

The usual real average earnings from all jobs of employed persons with earnings from labor was estimated at R$2,554. This result remained stable in relation to the immediately previous quarter (R$2,519) and increased in relation to the same quarter last year (R$2,359). Compared with the second quarter of 2020, only Rio Grande do Sul (5.8%) and São Paulo (5.5%) increased. Pará (-8.0%) and Rondônia (-7.4%) dropped. The other FUs remained stable. The Federation Units with the highest earnings were the Federal District (R$4,268), São Paulo (R$3,366) and Rio de Janeiro (R$3,251) and with the lowest earnings, Maranhão (R$1,408), Piauí (R$1,513) and Alagoas (R$1,543).

The usual real average wage bill from all jobs of employed persons with income from work was estimated at R$205.3 million reais, remaining stable in relation to the previous quarter (R$205.1 million reais) and dropping in relation to the same quarter last year (R$216.0 million reais).

PA has the highest informality rate (60.9%) and SC, the lowest one (26.9%)

The informality rate stayed at 38.4% of the employed population in the third quarter of 2020. Among the Federation Units, the highest rates were in Pará (60.9%), Maranhão (58.8%) and Amazonas (56.4%) and the lowest ones, in Santa Catarina (26.9%), the Federal District (28.6%) and São Paulo (29.1%).

To calculate the proxy of the informality rate of the employed population, the following population are taken into account: employees in the private sector without a formal contract; domestic workers without a formal contract; employers without CNPJ registration; self employed workers without CNPJ registration; assisting family workers.

Informality rate of the employed population, by FU (%) - Q3 2020