Unemployment falls to 8.3% with lower demand for work, says IBGE

Job market

It is the lowest level for the period since 2015, when the indicator was also at 8.3%

The unemployment rate fell to 8.3% in the quarter ended in May in Brazil, informed the Brazilian Institute of Geography and Statistics (IBGE) on Friday (30). It is the lowest level for the period since 2015, when the indicator was also at 8.3%. The information is from the Folha de São Paulo website.

The result, however, was more influenced by the drop in the search for jobs than by a significant increase in the number of employed workers, according to the IBGE. This is a movement that has been calling the attention of economists in recent months.

The May rate was in line with the median of financial market projections. Analysts polled by the Bloomberg agency also expected 8.3%. Unemployment was 8.6% in the immediately previous quarter, which ended in February.

The number of unemployed fell to 8.9 million by May, according to the IBGE. It is a reduction of 279,000 people (or -3%) compared to the previous three months, when the contingent was 9.2 million.

The data are part of the Continuous National Household Sample Survey (Continuous PNAD). Pnad investigates both the formal and informal labor market – from jobs with a formal contract or CNPJ to the popular odd jobs.

“This recoil [da taxa] in the quarter was more influenced by the drop in the number of people looking for work than by the significant increase in workers”,

said Adriana Beringuy, coordinator of household sample surveys at the IBGE.

“It was the lower pressure on the labor market that caused the reduction in the unemployment rate”, he added.

The unemployed population, according to official statistics, is made up of people aged 14 or over who are unemployed and are looking for jobs. Those who are not looking for opportunities, even without having a job, do not fit into this definition.

The population occupied with some type of work was estimated at 98.4 million in the quarter up to May. The data shows an increase of 278 thousand people (or 0.3%) in relation to February (98.1 million). The variation, however, represents relative stability in statistical terms, considers the institute.

Workforce

The population outside the labor force, in turn, reached 67.1 million. In this case, there was an increase of 382 thousand people (or 0.6%) in relation to the previous quarter (66.8 million).

The population outside the labor force is made up of those who are neither unemployed nor employed. This is an inactivity indicator.

Beringuy pointed out that the growth of this contingent is not associated with dismay with market conditions.

According to the researcher, what currently explains the inactivity is the decision of people who do not want or are not available to work.

“What we have concrete is that the growth of the population out of force is not due to the growth of discouragement”,

he said.

The number of discouraged people, who give up looking for vacancies because they think they won’t have a chance, was 3.7 million up to May. This represents a decrease of 6.2% (less 244 thousand) compared to the previous quarter (4 million).

When talking about the population outside the force, Beringuy cited recent data from Pnad Contínua that indicated that young people have stopped participating in the labor market. According to the researcher, it is possible that a portion of the group is prioritizing studies at the moment.

Historically, young people find it difficult to enter the job market. In the view of analysts, the offer of less attractive vacancies and the reinforcement of income transfers to families, via Auxílio Brasil or Bolsa Família, may explain this context.

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