Brazil reduces unemployment rate with support from small businesses.
The sector was responsible for approximately 60% of new hires up to April of this year.
247 - The unemployment rate in Brazil fell again, reaching 6,2% in the quarter ending in May, according to data released this Friday (27) by the Brazilian Institute of Geography and Statistics (IBGE). The number represents a drop of 0,6 percentage points compared to the previous quarter and almost 1 point compared to the same period last year.
The improvement in the labor market was driven by the private sector, which reached a record level: 39,8 million workers with formal employment contracts. This represents a growth of 0,8% compared to the previous quarter.
Another highlight of the survey is the role of small businesses – such as individual micro-entrepreneurs (MEI), micro-enterprises (ME), and small-sized enterprises (EPP) – in job creation. According to a survey by Sebrae, based on data from Caged, the sector was responsible for approximately 60% of new hires up to April of this year. Since January, more than 546 people have been employed by this segment throughout the country.
"Small businesses are the great engine of national development, generating jobs and income so that our population can have more dignity," says Décio Lima, president of Sebrae.
The IBGE survey also pointed to a drop in informality: the rate fell to 37,8%, which corresponds to 39,3 million workers. There was a reduction compared to the previous quarter (38,1%) and the same period in 2024 (38,6%). In addition, the number of self-employed workers with CNPJ (Brazilian tax ID) grew, with an increase of 3,7% in the quarter.
