Unemployment rate drops to 14.1% in the 2nd quarter, a better-than-expected number, says IBGE

(Getty Images)

The unemployment rate fell to 14.1% in the second quarter of this year, a reduction of 0.6 percentage points from the first quarter. Despite the decrease in the rate, the country still has 14.4 million people in line looking for a job, according to the Continuous National Household Sample Survey (PNAD Continuous) released on Tuesday (31) by the Brazilian Institute of Geography and Statistics (IBGE).

The expectation of the Refinitiv consensus was a median unemployment rate of 14.4% in the period.

This decline in the rate was influenced by the increase in the number of employed persons (87.8 million), which increased 2.5%, with over 2.1 million in the period. As a result, the level of employment rose 1.2 percentage points to 49.6%, which indicates, however, that less than half of the population of working age is employed in the country.

“The growth of occupation took place in various forms of work. Until then, we had been noticing increases in self-employment and unregistered employment, but little movement in formal employment. In the second quarter, however, there was a positive movement, with growth of 618 thousand more people in the contingent of employees with a formal contract”, explains the research analyst, Adriana Beringuy.

The number of employees with a formal contract in the private sector increased 2.1%, totaling 30.2 million in the second quarter of the year, compared to the previous one. In comparison with the same quarter of last year, the number was stable, but interrupted four successive quarters of declines.

Occupancy also increased in the second quarter with a 3.4% increase in the number of employees in the private sector without a formal contract (10.0 million) compared to the previous quarter. In relation to the second quarter of last year, this contingent increased 16.0% or 1.4 million people.

Self-employment hits record

Another highlight was self-employment, which reached a record level of 24.8 million people, an increase of 4.2% compared to the previous quarter. In one year, the contingent advanced 3.2 million, an increase of 14.7%. In fact, 52.2% of the increase in occupation in the monthly comparison and 62.7% of this increase in the annual comparison came from the increase in self-employed persons without CNPJ.

Adriana notes that the increase in occupation in the second quarter was mainly generated by activities related to accommodation and food (9.1%), construction (5.7%), domestic services (4.0%) and agriculture, livestock, forest production, fishing and aquaculture (3.8%).

“Accommodation and food, which includes restaurants and hotels, advanced 7.7% year-on-year, the first growth after four quarters of declines. This advance, however, does not return the activity to the pre-pandemic level, but it is a movement of slight recovery, after registering the second biggest loss of workers in 2020, behind domestic service”, said the research analyst.

Domestic work (5.1 million) had no significant variation compared to the first quarter of the year, but increased 8.4% compared to the second quarter of 2020. The category of employers (3.8 million) was stable in both comparisons . The public sector (11.8 million) registered a reduction of 4.4% (less 539 thousand people) compared to the same quarter last year.

Informal workers, which include those without a formal contract (employees in the private sector or domestic workers), without CNPJ (employers or self-employed) or unpaid workers, totaled 35.6 million people and a rate of 40.6% . In the previous quarter, the rate was 39.6%, with 34.0 million informal workers. A year ago this contingent was smaller, 30.8 million and a rate of 36.9%.

The PNAD also shows that underemployed workers due to insufficient hours worked, those who work fewer hours than they could work, reached a record number of 7.5 million people, an increase of 7.3%, with over 511 thousand people . In relation to the same quarter of the previous year, the indicator rose 34.4%, when there were 5.6 million underemployed people in the country.

The discouraged (5.6 million), people who gave up looking for work due to structural market conditions, there was a reduction of 6.5% compared to the first quarter of the year. But this contingent remains stable compared to the second quarter of last year.

The number of underutilized people, those unemployed, underemployed due to insufficient hours worked or in the potential workforce, was 32.2 million, a 3.0% reduction compared to the first quarter (33.2 million). The composite underutilization rate was also 28.6%.

(with IBGE News Agency)

To understand how to trade the stock market through technical analysis, sign up for the free course A Hora da Ação, with André Moraes.