The Brazilian annual unemployment rate was 7.8% in 2023, which represented a drop of 1.8 percentage points (pp) against the average in the previous month. In regional terms, 26 out of 27 Federation Units (FUs) registered a drop in this indicator, highlighted by Acre (-4.9 pp), Maranhão (-3.5 pp) and Rio de Janeiro and Amazonas (-3,2 pp both). On the other hand, Roraima (1.7 pp) was the only state in which the unemployment rate grew.

In Brazil, the unemployed population in the year added up to 8.5 million persons, dropping 1.8 million (-17.6%) over 2022. In this period, 25 FUs recorded a drop in the number of unemployed persons. While Mato Grosso do Sul remained stable (0.0%), the number of persons looking for a job in Roraima grew 38.5% in the year. The biggest drops in this contingent were reported in Acre (-45.7%),  Espírito Santo (-34,1%) and Maranhão (-29.7%).

Having hit 100.7 million persons in 2023, the employed population in Brazil peaked the time series started in 2012. This figure represented a growth of 3.8% compared with the previous year. Twenty-two FUs increased this indicator, highlighted by Amapá (8.6%), Alagoas (7.8%) and Goiás (7.1%).

In 2023, six states accounted for nearly 60% of the Brazilian employment: São Paulo (24.3%), Minas Gerais (10.7%), Rio de Janeiro (8.1%), Bahia (6.0%), Paraná (5.9%) and Rio Grande do Sul (5.8%).

The Brazilian employment-population ratio (percentage of employed persons in the population at working age) was estimated at 57.6% in 2023, 1.6 pp more than in 2022 (56.0%). The highest proportions were registered in Santa Catarina (65.9%), Goiás (64.7%) and Mato Grosso (64.7%). The lowest proportions were in Acre (45.7%), Rio Grande do Norte (46.6%) and Maranhão (46.7%).

The annual estimate of the composite underutilization rate was of 18.0%, a drop of 2.9 pp against 2022, when the rate was 20.9%. The highest rates were in Piauí (40.3%), Bahia (33.1%) and Sergipe (32.5%). Santa Catarina (6.0%), Rondônia (6.5%) and Mato Grosso (9.0%) recorded the lowest ones.

The annual informality rate changed from 39.4% in 2022 to 39.2% in 2023. Maranhão (56.5%), Pará (56.5%) and Piauí (54.4%) were among the states with the highest rates. The lowest percentages were in Santa Catarina (26.4%), Federal District (29.7%) and São Paulo (31.5%).

Annual unemployment rates retreat in 26 Federation Units in 2023
With the drop of 1.8 pp in the Brazilian annual unemployment rate (7.8%), 26 Federation Units also registered a retraction in this indicator. The biggest retreats were in Acre (-4.9 pp), Maranhão (-3.5 pp) and Rio de Janeiro and Amazonas (both with -3.2 pp), whereas the only increase was recorded in Roraima (1.7 pp). On the other hand, the highest unemployment rates were in Pernambuco (13.4%), Bahia (13.2%) and Amapá (11.3%). The lowest ones were in Rondônia (3.2%) and Mato Grosso (3.3%), which hit their lowest levels in the time series, and in Santa Catarina (3.4%).

Unemployed population falls in 25 Federation Units

In the year, the Brazilian unemployed population dropped 17.6% and reached 8.5 million persons, which represented less 1.8 million persons looking for a job. Of the 27 FUs, 25 reported a drop in the number of unemployed persons, highlighted by Acre (-45.7%), Espírito Santo (-34.1%) and Maranhão (-29.7%). In this same period, Mato Grosso do Sul remained stable (0.0%). In Roraima, the unemployed population grew 38.5%. The states with the largest contingents were São Paulo (2.0 million), Bahia (922 thousand) and Rio de Janeiro (914 thousand).

Employed population grows in 22 Federation Units

The Brazilian employed population grew 3.8% over the previous year and hit 100.7 million persons. It represented the peak in the time series of the survey started in 2012. The indicator increased in 22 FUs, highlighted by Amapá (8.6%), Alagoas (7.8%) and Goiás (7.1%).

Having reached 37.7 million persons, the number of workers with a formal contract in the private sector increased 5.8%, also peaking in the time series started in 2012. Only four FUs retreated in this indicator: Rio Grande do Norte (-8.4%), Rondônia (-6.2%), Tocantins (-4.0%) and Acre (-1.3%). The other FUs registered positive changes. The largest contingent of workers with a formal contract was in São Paulo (11.4 million), followed by Minas Gerais (4.3 million) and Rio de Janeiro (3.1 million).

The number of workers without a formal contract in the private sector also grew in this period, reaching 13.4 million (5.9%). Of the eight Federation Units that reduced this contingent, the biggest changes were in Acre (-26.1%), Rondônia (-15.2%) and Mato Grosso (-7.4%). Among those that increased the number of workers without a formal contract, the highlights were Mato Grosso do Sul (26.5%), Amazonas (25.9%) and Rio Grande do Norte (25.8%).

The number of self-employed workers added up to 25.6 million in 2023, a rise of 0.9% in the year. In this indicator, 15 FUs recorded a negative change, highlighted by Pará (-8.2%) and Tocantins (-6.6%).

Lastly, the number of domestic workers grew 6.1% last year, reaching 6.1 million persons. This contingent increased in 19 FUs, with the highest percentages reported in Piauí (31.9%), Acre (27.8%) and Paraíba (21.3%). The biggest drops were registered in Roraima (-22.2%), Amazonas (-18.9%) and Federal District (-12.5%).

Maranhão records the highest informality rate and Santa Catarina, the lowest one
Between 2022 and 2023, the Brazilian annual informality rate changed from 39.4% to 39.2%. Maranhão (56.5%), Pará (56.5%) and Piauí (54.4%) were among the states with the highest rates. The lowest percentages were in Santa Catarina (26.4%), Federal District (29.7%) and São Paulo (31.5%).

Annual informality rate (%), by Federation Unit - 2023

Piauí has the highest underutilization rate and Santa Catarina, the lowest one

In 2023, the composite underutilization rate was estimated at 18.0%, a drop of 2.9 pp over the previous year, when it hit 20.9%. While the highest rates were in Piauí (40.3%), Bahia (33.1%) and Sergipe (32.5%), the lowest ones were reported in Santa Catarina (6.0%), Rondônia (6.5%) and Mato Grosso (9.0%).

Annual underutilization rate of the workforce (%), by Federation Unit - 2023