Rondônia has the lowest unemployment in the country, but informality is high

The lowest unemployment rate in the country is in Rondônia. In the first half of the year, it was 2.4%, according to the Brazilian Institute of Geography and Statistics (IBGE). But the index does not necessarily reflect a more dynamic job market, point out analysts interviewed by People’s Gazette.

According to Lucas Assis, an analyst at Tendências Consultoria, the low unemployment rate in Rondônia is associated with the reduced labor force participation rate, which is 56.7% of the economically active population. “This suggests a relatively smaller search for employment”, says the economist.

The occupancy rate in Rondônia is the ninth lowest among the federation units. In Brazil, the average is 61.6%. The highest rate is in the Federal District (69.1%).

The number of people working on their own in Rondônia is also large: 36.9%, while in the country it reaches 25.5%.

Another problem, according to economist Rodolpho Tobler, from the Brazilian Institute of Economics at Fundação Getulio Vargas (Ibre/FGV), is the informality rate in the state – 48.4%, one of the highest in the country, according to IBGE.