Brazil Jobless Rate Hits New Low as Participation Slips, Hiring Momentum Fades

Overview

• IBGE reports unemployment at 5.4% in the quarter ended October, the lowest since PNAD Contínua began in 2012.
• The labor-force participation rate fell to 62.0%, with IBGE noting the lower jobless rate reflects fewer people seeking work.
• Seasonally adjusted occupation declined for a third month, while October’s Caged showed only 85,000 formal jobs and losses in industry, construction and agriculture.
• Formal payroll employment, average real wages (R$3,528) and the wage bill (R$357.3 billion) set records, with most income growth driven by higher pay rather than more people working.
• Micro and small firms accounted for 98% of October’s formal hires, adding 83,400 jobs, according to Sebrae’s read of Caged data.