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🤔 Labor market paradox
While Brazil’s occupation rates are at a record high, government spending on unemployment insurance is also going up. Some of the country's job market dynamics help explain this peculiarity
Letícia Arcoverde
December 25, 2024 • Reading Time: 2 minutes
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Brazilian spending in unemployment insurance up as jobs grow
People reading job offers on an improvised advertising column at São Paulo’s city center. Photo: Cargol/Shutterstock
While unemployment claim data in the United States are closely watched for signs of economic trends, Brazil does not pay the same attention — and for good reason.
The country’s unemployment rate has reached its lowest point since 2012, when the Brazilian Institute of Geography and Statistics (IBGE) adopted its current methodology. The rate has almost halved in just three years to 6.2% in October 2024.
And yet, the number of Brazilians requesting and receiving unemployment insurance has risen — as has the total amount paid by the government in jobless benefits.
Adjusted for inflation, Brazil spent BRL 45.5 billion (USD 7.35 billion) on unemployment insurance in annual accumulated figures through October 2024, a 6% increase compared to the year before and 21% higher than 2021.
