Data from IBGE shows that 5 states in the Northeast have a level above 40% for people aged 18 to 24
The underutilization rate reaches up to 45.7% among young people aged 18 to 24 in the Northeast. More than 5 states in the region have a level above 40% of underutilization: Piauí (45.7%), Pernambuco (42.3%), Bahia (42.1%), Alagoas (41.6%) and Sergipe (41.2%). The data are from Continuous PNAD (Continuous National Household Sample Survey) Quarterly, with data from the 2nd quarter of 2024.
Brazil’s average underutilization rate among all ages was 16.4% in the second quarter of this year. For young people aged 18 to 24, the average percentage was 26.7% in the same period.
According to the IBGE (Brazilian Institute of Geography and Statistics), the underutilized ones are:
- person who is underemployed due to insufficient hours worked;
- unemployed;
- potential workforce:
- they effectively search for work, but were not available to work in the reference week;
- people who are not looking for a job but would like to have a job;
- discouraged, those who were not available to get work because they could not find suitable work.
At the bottom of the table are: Santa Catarina (9.1%), Mato Grosso (11.3%), Rondônia (12%), Mato Grosso do Sul (14.8%) and Espírito Santo (15.1%).
INCOME
Data from IBGE show that 4 of the 5 states with the highest underutilized rate have the lowest average salaries among people aged 18 to 24. They are: Bahia (R$1,195), Alagoas (R$1,236), Piauí (R$1,240) and Pernambuco (R$1,266).
The survey was carried out based on the average monthly income people usually receive from their main job.
The average monthly income of young people aged 18 to 24 was R$1,741 in Brazil in the 2nd quarter. This value is 44.1% lower than the average for all ages (R$3,113) in the period. There are 9 states with income lower than the minimum wage of R$1,412.
FORMALIZATION
Within the underutilization group there are those who are discouraged, who are people who do not look for work because they do not believe they will find a suitable vacancy. Andre Manchamanager of the Jobs and Opportunities Initiative Brazil (JOI Brazil) at J-PAL LAC, said that the job market is precarious for this group of people.
He advocated the creation of incentives that are tailored to each state to create quality jobs. Mancha said that the formalization of companies and professionals is essential for the Brazilian economy, especially with the aging of the population. Without formal work, there is no sustainability of Social Security in paying pensions.
“These people [desalentadas] They will most likely need a source of income and will most likely resort to informal employment or an arrangement that does not have any type of social security. They will not have access to any type of benefit, they will not contribute to their retirement and to the social security system as a whole.”he declared.
The senior economist at CNC (National Confederation of Trade in Goods, Services and Tourism), Fabio Bentessaid that underutilization is an intermediate situation between full employment and unemployment. He argued that it is natural for regions that suffered more from past recessions to have a higher underutilization rate, especially when analyzing data from young people.
According to Bentes, the data shows that there is a natural difficulty for young people to enter the job market, even partially.
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