Small businesses encourage a drop in unemployment in the country, shows Pnad

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Brazil is approaching its best historical moment in job creation

This is good news for the Brazilian economy and has the direct contribution of small businesses. The unemployment rate for the quarter ending in January 2024 was 7.6%. The index is 0.7% lower compared to the same period last year (8.4%) and very close to the best result ever recorded in the country (7% of unemployed people in 2014). The data was released on Thursday (29) by the Continuous National Household Sample Survey (Pnad) of the Brazilian Institute of Geography and Statistics (IBGE).

The number of employed workers reached 100.6 million, which represents an increase of 0.4% (or 387 thousand more people) compared to the quarter ended in October 2023 and 2% (1.95 million more people) in the period of 12 months.

A study carried out by Sebrae shows that, in 2023, more than 80% of formal jobs in Brazil were generated in small businesses. In total, there were more than 1.1 million jobs in the segment. For the president of the institution, Décio Lima, reducing the number of unemployed people and those on the margins of the formal economy is crucial because it naturally represents a reduction in poverty and the recovery of families’ purchasing power.

“The news about the economic policy of President Lula and vice-president, Geraldo Alckmin, clearly shows the enthusiasm that we must have with the resumption of Brazil for the Brazilian people. Unemployment of 7.6% accumulated up to January and the increase in income of 3.8% clearly show the moment we are living in. These numbers bring a lot of enthusiasm, especially in the economy of micro and small companies, which are the biggest providers of jobs and income for the Brazilian people”,

said the president of Sebrae Nacional, Décio Lima.

According to the Family Consumption Intention Index (ICF), calculated by the National Confederation of Commerce in Goods, Services and Tourism (CNC), with more jobs and money in their pockets, the consumption perspective of Brazilians in February grew by 10, 4%.

According to the coordinator of IBGE Household Surveys, Adriana Beringuy, stability in the employed population in the quarter ending in January is common, or even a drop in this population, but that was not what happened in 2024. “On the contrary, we see an expansion of occupation”, he pointed out.

Informality

The target audience for several Sebrae actions, those who are in the informal sector were also verified. The number remained stable in relation to the quarter and grew 2.6% compared to the previous year – an increase of 335 thousand people. The informality rate was 39% of the employed population, which represents 39.2 million informal workers.

Income

Finally, the IBGE survey also showed that the sum of the incomes of all people employed in the Brazilian labor market. In the quarter ended in January, it reached R$305.1 billion. The average income of workers reached R$3,078 (1.6% higher in the quarter and 3.8% in the year).

*With information from consultancy

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