Regional inequalities affect unemployment results in Brazil, says economist

Unemployment fell in 22 of the 27 states in the second quarter of 2022, compared to the previous quarter, the IBGE said on Friday (12). The other five states were stable in the period, according to the Quarterly Continuous National Household Sample Survey (PNAD).

The movement reflects the generalized drop in the unemployment rate in the last year, which, from April to June, was 9.3%, a drop of 1.8 percentage points (pp) compared to the first quarter of the year (11.1% ).

However, in an interview with CNN Bruno Imaizumi, economist at LCA Consultores, stated that regional inequalities affect unemployment results in Brazil.

He points out that the North and Northeast regions, because they have a lower infrastructure compared to other states and a low level of education, tend to have a reduced per capita income, which affects employment in these places.

The biggest drop was in Pernambuco, with a drop of 3.5 pp in the quarterly comparison. Then come Tocantins, Alagoas, Pará, Piauí and Acre, with drops of around 3 pp.

The highest unemployment rates were in Bahia (15.5%), Pernambuco (13.6%) and Sergipe (12.7%), and the lowest, in Santa Catarina (3.9%), Mato Grosso (4, 4%) and Mato Grosso do Sul (5.2%).

In the annual comparison, all 27 federative units had “a significant drop in the unemployment rate”, said the institute. The national index was at 14.2% a year ago.

The highest rates of informality were registered in Pará (61.8%), Maranhão (59.4%) and Amazonas (57.7%). The smallest were Santa Catarina (27.2%), São Paulo (31.1%) and Federal District (31.2%). The general rate in Brazil is 40%.

Santa Catarina also has the highest rate of workers with a formal contract in the private sector, with 87.4%, followed by São Paulo (81.0%) and Paraná (80.9%). The smallest are from Piauí (46.6%), Maranhão (47.8%) and Pará (51.0%).

Future

The economist at LCA Consultores stated that there will be a slow and continuous recovery in income in Brazil. This is because a reopening of the economy is taking place and with the cooling of the pandemic, services that previously did not occur due to social isolation, have returned to the surface.

*With information from Ligia Tuon, from CNN Brasil Business

Source: CNN Brasil

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