Study reports average income increase of 8.3 percent for the general labor force and 29.2 percent increase among the poorest workers

BRASÍLIA (25 September 2012) –   Brazilian workers making up the lowest 10 percent of the labor force in terms of income had higher salary increases than the remaining 90 percent of the labor force, according to the National Household Sample Survey (Pesquisa Nacional por Amostra de Domicílios - PNAD) 2011 released last week by the Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística - IBGE). Wages in this lowest range grew from R$ 144 to R$ 186 (US$ 71 to US$ 92) a month, increasing 29.2 percent between 2009 and 2011. During the same period, the average income from work of all Brazilians grew 8.3 percent, from R$ 1,242 to R$ 1,345 (US$ 613 to US$ 663) a month.

According to IBGE, income increased proportionately more among the disadvantaged groups and the better the worker’s position in the job market, the lower the pace of increase.  Among domestic workers, for example, the increase was 5.2 percent for those with a formal contract, and 15.2 percent for those without a contract. 

"PNAD helps prove that the poor are actually working and want better opportunities," says the Brazilian Minister of Social Development and The Fight Against Hunger Tereza Campello.

Measuring inequality:  The Gini coefficient

Including all income sources, the average monthly income of workers in Brazil showed a real gain of 4.6 percent, having reached R$ 1,279 (US$ 631). Thus, the measure of inequality (Gini coefficient) fell from 0.518 in 2009 to 0.501 in 2011 in Brazil. This increase in income distribution brought the index down in all forms of calculation (see chart). The closer the index is to zero, the more equal is the distribution of income.

 

 

 

 

 

 

 

 

Employees with a formal contract had a real gain of 4.9 percent in 2011 over 2009. Other classes that had an increase in income from their primary employment were military personnel (6.2 percent) and civil servants (11.6 percent). In 2011, the top 10 percent of wage earners received 41.5 percent of the total earnings from work.

Child labor has decreased in all age groups in all regions and in absolute numbers. The most significant decrease – close to 30 percent - was recorded among children 5 to 9 years of age. Over the past two years, almost 600,000 children and young adults have stopped working.

Further advances in poverty alleviation

According to Minister Tereza Campello, since the results of PNAD are from last year, these statistics do not yet take into consideration the effects of the implementation of the Affectionate Brazil Plan - a set of measures that seek to move children up to six years old out from extreme poverty. "Today we can say for sure that the data for 2012 are already better." The plan alone has facilitated the reduction of extreme poverty in Brazil by 40 percent. Among children up to six years of age, the impact is even greater: 62 percent have been lifted out of extreme poverty. "Brazil is showing the world that it is possible to grow and include at the same time, and that the inclusion of the poorest contributes to the growth of the country.”

Brazil’s resident population reaches 195.2 million

IBGE also reported the estimated resident population in Brazil in 2011 to be 195.2 million, a growth of 1.8 percent (or 3.5 million) above 2009. Women accounted for 51.5 percent (100.5 million) of the population. In the female population, 46.7 percent were under 29 years of age and 53.3 percent were 30 years or older. For the male population, the percentages were 50.5 percent and 49.5 percent respectively. Among people aged 15 years or over, 57.1 percent (85.5 million) were in a relationship with a spouse or partner.

About Secom:

The Secretariat for Social Communication (Secom) of the Presidency of Brazil is responsible for coordinating the public relations activities for the government of Brazil. The official website of the Brazilian State is www.brasil.gov.br. The official social media accounts for the Brazilian State are on Facebook and Twitter at http://www.facebook.com/BrazilGovNews/ and twitter.com/BrazilGovNews. 

US PRESS CONTACT:

Katie Lowry, Fleishman-Hillard New York 

Telephone:  + 1 212-453-2217

Email: kathleen.lowry@fleishman.com