Services Boom Drops Unemployment in Brazil to Eight-Year Low

Unemployment in Brazil dropped to 7.7% in the quarter ending in September 2023, the lowest level since the same period in 2015, according to data released by the Brazilian Institute of Geography and Statistics (IBGE).

The decline was driven by a boom in the services sector, which generated a record 420,000 jobs during the period.

A taxa de desocupação ficou em 7,7% no terceiro trimestre, com variação de -0,4 ponto percentual (p.p.) na comparação com os três meses anteriores. É o menor nível desde o trimestre encerrado em fevereiro de 2015 (7,5%). Saiba + na Agência #IBGE Notícias: https://t.co/Aev17v4sIu pic.twitter.com/JUSOS5GeSw

— IBGE Comunica (@ibgecomunica) October 31, 2023

The services sector, which includes IT, communications, finance, real estate and other professional services, is now the largest employer in Brazil, accounting for over half of all jobs.

The sector’s growth has been fueled by a combination of factors, including the country’s growing middle class, rising disposable income and the increasing use of technology.

Employment has also been boosted by a reduction in the number of people looking for work. The unemployed population was 8.316 million in September, the lowest level since May 2015.

However, there are some concerns about the quality of the jobs being created. Nearly 40% of Brazilian workers are now in the informal sector, where jobs tend to be less secure and offer fewer benefits.

President Luiz Inácio “Lula” da Silva said that 2 million formal jobs will be created in the country by the end of the year. He also predicted a growth in GDP three times larger than what the IMF projected for Brazil in 2023.