Change in the social scenario is the result of the recovery of employment and increased income, although inequality still remains a challenge
O reached a significant milestone by recording that 50.1% of households belong to classes C and higher, which reflects a monthly household income above R$3,400. This change in the social scenario is the result of the recovery of employment and increased income, although inequality still remains a challenge. The reduction in unemployment has contributed to improving family income, but the quality of education can impact social mobility in the future. Since last year, many families that were in classes D and E managed to migrate to class C, driven by the recovery of the job market after the pandemic. Class C, in particular, saw a 9.5% growth in their income, and forecasts for 2025 indicate that this class will continue to stand out, with an expected 6.4% increase in income.
Despite the advances observed, social mobility for classes D and E may face difficulties in the coming years. Factors such as low wages and high rates of informal work make it difficult for these families to rise. Although entering the job market is essential for reducing poverty, it alone is not enough to eradicate it. In 2024, Brazil reached an unemployment rate of 6.1%, which represents the lowest rate ever recorded.
Furthermore, the average per capita household income grew 6.98%, with an even more significant increase of 10.2% among the poorest 50% of the population. The creation of 3.6 million formal jobs between 2023 and 2024 was an important factor in this social improvement. However, the increase in the Selic rate may favor class A, which has income concentrated in financial investments.
Published by Sarah Paula
*Report produced with the help of AI
