Inequality retreats in 2022 to the lowest level in the historical series, with Auxílio Brasil and employment, says IBGE

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Result reflects the increase in the value of the Brazil Aid in the period and improvement in the job market. There was an increase in the real average monthly income in almost all classes, with the sole exception of the group of the richest 1%, which had a decrease of 0.3%. Acervo Globo With an increase in the value of the Auxílio Brasil in an election year and an improvement in the job market, income inequality fell in the country in 2022 and reached the lowest level in the historical series of the National Household Sample Survey (PNAD) Continuous – All income, which began in 2012. Data released this Thursday (11) by the Brazilian Institute of Geography and Statistics (IBGE) show that the so-called Gini index of per capita household income – which is an indicator of inequality – fell from 0.544 in 2021 to 0.518 in 2022. The index ranges from 0 to 1. The closer to 1, the greater the inequality of a country. The result was also below 2019, before the pandemic, when it was 0.544. “We saw in the passage between 2021 and 2022 an important reduction in inequality, but it is still a very high value compared to other countries”, says the IBGE analyst and person responsible for the research, Alessandra Brito. The indicator reflects the increase in average real monthly household income per capita in almost all income classes: the only exception was in the group of the richest 1% (which had a decrease of 0.3%). Income growth, however, occurred more intensely in the poorest sections of the population, thus reducing inequality. Among the poorest 5%, the average monthly income per capita was R$87 in 2022. Despite the value below R$100, this result represents an expansion of 102.3% in relation to R$43 in 2021 (at 2022 prices). In the next bracket, between the 5% and 10% with the lowest income, the increase was 47.5%, to R$ 239. The group with income between 10% and 20% poorer, in turn, an increase of 22.7%, to R$ 378. At the other end, in the group located between the 95% and 99% richest, income growth was 0.5%, to R$ 6,882. In the range between 90% and 95% richest, the jump was 5.8%, to R$ 3,901. In the group between 80% and 90% with higher incomes, there was an increase of 7.4%, to R$ 2,521. In the Brazilian average, the average real monthly household income per capita reached R$1,586 in 2022, up 6.9% compared to 2021, when it had recorded the lowest value (R$1,484) of the historical series started in 2012. , the mass of real monthly household income per capita rose 7.7% compared to 2021, to R$ 339.6 billion. To explain this movement in income, the research analyst highlighted the importance of increasing the amount of Auxílio Brasil in an election year – first to R$ 400 and then to R$ 600, in the second half. The average values ​​of Bolsa Família, which was in effect until 2021, were much lower, she recalls. And also the influence of the improvement in the labor market, with an increase in employment – ​​the employed population grew by 8.8% – and the mass of earnings from work – by 6.6%, to R$ 253.1 billion per month. “The reduction in inequality was a combination of two things, the improvement of the labor market and higher value social programs. […] There is no way to isolate just the social program or just the job market, both factors contributed a lot. So much so that we have the lowest Gini for work income and the lowest Gini for household income”, says Alessandra Brito. She recognized, however, the difference between the dynamics of the labor market and that of social programs, whose value increases through government decisions. “We have to remember that last year was an election year, right? So, for the job market to recover, it is something more organic and has to do with the movement of the economy as a whole. Now, to increase the value of the social program, you can do it with a bill or with a provisional measure. They are different policies, with different maturation times. Both things play an important role and we have to see how long they last in 2023.”

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