The labor market absorbed more than 3 million workers in the quarter ended in October, between formal and informal workers, reducing the unemployment rate to 12.1%, compared to 13.7% in the quarter through July. However, the average income from work dropped to the worst level in the historical series of the Continuous National Household Sample Survey (Continuous Pnad), started in 2012 by the IBGE.
The average income of employed workers dropped 4.6% in just one quarter, R$117 less than in the quarter ended in July. In relation to the quarter ended in October of last year, the average income shrank 11.1% (R$ 307 less), to the historic low of R$ 2,449 monthly. In other words, there are more people working, but the salary is getting lower, due to both the competition for vacancies that arise and the high inflation that erodes the purchasing power of Brazilians who have some type of remuneration.
“People work more, there is more work in the economy, but with income in the process of falling”, said Adriana Beringuy, coordinator of Work and Income at IBGE. “We have a significant expansion of occupation that is not accompanied by income growth.”
The drop from 13.7% to 12.1% in the unemployment rate in the moving quarter to October reflects an employed population (94.0 million) that is close to the pre-pandemic period (94.7 million), and should surpass this level in the next reading, says Adriana.
Despite this, the country still had 12.906 million people unemployed in the quarter ended in October. If all the underutilized labor is considered, 29.906 million Brazilians lacked work.
For economist Bruno Imaizumi, from LCA Consultores, the reduction in unemployment is driven by more precarious jobs and, consequently, with lower income. “The problem is that this resumption of occupation is not accompanied by a return of income”, pondered Imaizumi. “We are in a complicated situation because we see this income stagnation. We no longer have emergency aid, and Brazil Aid is not extensive.”
Informality
The country registered an informality rate of 40.7% in the labor market in the quarter until October, with 38.211 million workers working without a formal contract. In one quarter, that number increased by 1.782 million people. “54% of the expansion of occupation (in the quarter to October) came from informality”, said Adriana.
The chief economist of Banco Original, Marco Caruso, expects unemployment to continue on a downward trajectory and close 2022 at around 10.5%. He predicts that the trend of job creation within the lower income bracket, already established in 2021, will continue into next year.
“The positive side of the story is that we will start to have a decompression of inflation so that real income can have some improvement”, evaluated Caruso.
The information is from the newspaper The State of São Paulo.
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