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Quarterly Continuous PNAD: unemployment down in 20 of the 27 FUs in Q3 2021

November 30, 2021 09h00 AM | Last Updated: December 02, 2021 04h47 PM

The IBGE releases today the new series of the Continuous PNAD, which was reweighted due to, among other factors, the change in the collection during the Covid-19 pandemic. IBGE's technical note on this reweighting can be accessed here.

The country's unemployment rate in the 3rd quarter of 2021 was 12.6%, with drops of 1.6 percentage points (pp) compared to the 2nd quarter of 2021 (14.2%) and 2.2 pp compared to the 3rd quarter of 2020 (14.9%).

Compared to the previous quarter, the unemployment rate decreased in 20 of the 27 Federation Units. The highest rates were in Pernambuco (19.3%), Bahia (18.7%), Amapá (17.5%), Alagoas (17.1%) and Sergipe (17.0%) and the lowest in Santa Catarina (5.3%), Mato Grosso (6.6%), Mato Grosso do Sul (7.6%), Rondônia (7.8%) and Paraná (8.0%).

The unemployment rate was 10.1% for men and 15.9% for women, and it was below the average for whites (10.3%) and above it for blacks (15.8%) and browns (14.2%). The rate for people with incomplete higher education (14.3%) was more than double teh one for those with complete higher education (6.3%)..

The composite labor underutilization rate (percentage of unemployed persons, time-related underemployment and in the potential workforce in relation to the extended workforce) was 26.5%. The highest rates were from Maranhão (43.0%), Piauí (42.7%), Sergipe (42%), Bahia (41.1%), Alagoas (40.8%) and the lowest, from Santa Catarina ( 9.9%), Mato Grosso (12.9%) and Rondônia (16.9%).

The number of discouraged workers was 5.1 million people. The percentage of discouraged in the workforce was 4.6%. Maranhão (17.6%) and Alagoas (15.1%) had the highest percentages and Santa Catarina (0.7%), Mato Grosso (1.2%) and Rio Grande do Sul (1.4%), the lowest.

The percentage of workers with a formal contract was 74.1% of employees in the private sector in the country. The highest percentages were in Santa Catarina (89.2%), Rio Grande do Sul (82.9%), São Paulo (81.8%) and Paraná (80.9%) and the lowest, in Maranhão (49, 6%), Pará (52.0%), Sergipe (52.8%) and Piauí (54.0%).

The percentage of the self-employed population was 27.4% in the country. Amapá (38.2%), Amazonas (36.4%) and Pará (36.1%) showed the highest percentages and the Federal District (21.5%), São Paulo (23.4%) and Mato Grosso do Sul (24.2%), the smallest.

The informality rate for the country was 40.6% of the employed population. The highest rates were in Pará (62.2%), Amazonas (59.6%) and Maranhão (59.3%) and the lowest in Santa Catarina (26.6%), São Paulo (30.6%) and Federal District (31.8%).

In Brazil, the average real monthly earnings in the 3rd quarter of 2021 was R$2,459, decreasing against the previous quarter (R$2,562) and against the same quarter of 2020 (R$2,766). Compared to the previous quarter, the average income fell in three FUs: Rio de Janeiro (-11.9%), Amazonas (-6.3%) and Paraná (-5.1%), with stability in the others. Compared to the same quarter of 2020, 12 of the 27 FUs had a decrease, especially in Roraima (-18.6%), Paraíba (-18%) and Amazonas (-17.2%).

Unemployment rate falls in 20 Federation Units in Q3 2021

Against the previous quarter, the unemployment rate fell in 20 Federation Units, being leveled off in the other ones.  Compared to the same quarter of 2020, there were decreases in 21 FUs, with a highlight to Roraima (-8.4 pp), Espírito Santo and Mato Grosso do Sul (both with – 4.2 pp). There was stability in Pará, Amapá, Tocantins, Piauí, Pernambuco and in the Federal District.

Unemployment rate by FU against the previous moving quarter (%) - 3rd quarter 2021

MA has highest underutilization rate (43.0%) and SC, the lowest (9.9%)

In the 3rd quarter of 2021, the compound rate of labor underutilization - percentage of unemployed persons or time-related underemployed persons or persons in the potential workforce in relation to the extended workforce - was 26.5%. Maranhão (43.0%) recorded the highest rate, followed by Piauí (42.7%) and Sergipe (42%). The lowest rate was in Santa Catarina (9.9%), followed by Mato Grosso (12.9%) and Rondônia (16.9%)

Compound Underutilization Rate of the Workforce bu FUs (%) - Q3 2021

AP has the biggest proportion of self-employed (37.7%) and the FD, the smallest (21.5%)  

The percentage of self-employed persons in the country in Q3 2021 was 28.3%.  The North (34.5%) and Northeast (31.1%) recorded the highest percentages. Amapá recorded the highest percentage (38.2%), followed by Amazonas (36.4%) and Pará (36.1%). The Federal District (21.5%), São Paulo (23.4%) and Mato Grosso do Sul (24.2%) recorded the lowest rates.

Percentage of self-employed workers, bu FU (%) - Q3 2021

Maranhão has smallest percentage (49.6%) of workers with a formal contract; Santa Catarina, the biggest (89.2%)

In Q3 2021, 74.1% of the employees in the private sector had a formal labor contract. The North (60.0%) and Northeast (57.6%) had the lowest rates, the South (83.8%), the biggest. The survey pointed out that 24.4% of the domestic workers had a formal labor contract.

The Federation Units with the biggest percentage of workers with a formal contract in the private sector were Santa Catarina (89.2%), Rio Grande do Sul (82.9%) and São Paulo (81.8%). The smallest percentages were those of Maranhão (49.6%), Pará (52.0%) and Sergipe (52.8%).

Percentage of persons WITH a formal contract among workers in the private sector, by Federation Units (%) - Q3 2021

In Q3, average earnings fall in three Federation Units

In Brazil, monthly average real earnings, usually earned by the employed population, was R$ 2,459, with a decrease both against Q2 2021 (R$ 2,562) and in relation to the same quarter in the previous year (R$ 2,766). Among the Federation Units, compared to the previous quarter, just three had decrease: Rio de Janeiro (-11.%), followed by Amazonas (-6.3%) and Paraná (-5.1%); the other FUs presented stability.  Compared to the same quarter of 2020, 12 of the 27 FUs had decrease, with more significant reductions in Roraima (-18.8%). Paraíba (-18%) and Amazonas (-17.2%).

The biggest earnings were those of the Federal District (R$ 4,094), São Paulo (R$ 3,054) and Rio de Janeiro (R$ 2,888) and the lowest, of Maranhão (R$ 1,511), Piauí (R$ 1,591) and Bahia (R$ 1,583).

Pará (62.2%) and Maranhão (59.6%) have highest informality rate and Santa Catarina, the lowest (26.6%)

The informality rate in Q3 2021 stayed at 40.6% of the employed population. Pará (62.2%), Amazonas (59.6%), Maranhão (59.3%) and Piauí (57.7%) had the biggest rates, and Santa Catarina (26.6%), São Paulo (30.6%) and the Federal District (31,8%), the lowest.

For the calculation of the informality rate of the employed population, the following populations are considered:  Worker in the private sector without a formal employment contract; Domestic worker without a formal employment contract; Employer without a CNPJ register; Self-employed worker without a CNPJ register; Contributing family worker.  

Informality rate of the employed population, by Federation Units (%) - Q3 2021