Brazil ended 2023 with the lowest unemployment rate in 9 years
O Brazil closed 2023 with the lower unemployment rate in nine years.
“Welcome”. These are words that Clésio Brás Queiroz loves to say and enjoyed hearing even more. In 2023, he became unemployed, but, 15 days later, the receptionist had already been welcomed by another hotel.
“I feel that the market is really booming, at least for this area of tourism it is doing very well”, he says.
And the guest doesn’t even notice that this is João Gabriel de Araújo’s first job, who displays the security of a signed contract on his face.
“With CLT you already have your guarantee that you will receive it. So, for me, you already have that breather, it’s much better”, says the cashier.
The presence of the two new employees in neighboring rooms is no coincidence. It is a portrait of the job market in Brazil last year. The unemployment rate was 7.8% in 2023, the lowest level since 2014.
This rate was accompanied by other records. The number of employees with signed card increased by 5.8% and surpassed 37 million people, highest number since it began to be measured this way by IBGE in 2012.
“I expected a weaker economy. With that, a worse job market. But we had a very important agricultural shock and there was a very large fiscal impulse in the transition. This helped to sustain the economy and, with that, the falling numbers gradual increase in the unemployment rate, which surprised positively in the year”, says FGV economist Ibre Fernando de Holanda Barbosa Filho.
Adding the informal with whoever has signed cardthere are more than 100 million Brazilians working, also a record. This number represents an increase of almost 4% compared to 2022.
Along with the new vacancies came better salaries. After two years of decline, the average income of workers rose 7.2% in 2023, and reached R$2,979 – very close to the 2014 record, which was R$10 more.
Maria José Monteiro Gomes was promoted in 2023 and felt this difference in her pocket.
“You know that at the end of the month you worked, you did your work, and at the end of the month you are rewarded. So that’s good”, says the floor supervisor.
But research shows that the number of Brazilians who live one day at a time, without the guarantee of formal work, has also increased. They are almost 40 million of people in the same situation as street vendor Washington Silva.
“We invent it, we run after it and go to another corner. It goes somewhere else because anyone who has a family, a child, can’t stop,” she says.
A informality It is just one of the challenges so that, along with quantity, Brazil improves the quality of employment.
“We are celebrating things that are important, that make a difference in people’s well-being, but Brazil is still far from being well. The most important thing that the government has to do is transform the business environment in Brazil and invest in education, retraining and qualification of workers, seeking to improve productivity”, says Manuel Thedim, executive director of the Institute of Labor and Society Studies .