In 2024, the informality rate reached 31.77%, the highest rate since 2012, even with the unemployment rate recorded at 6.6%, the lowest in the same period
A survey conducted by (IPEA) points out that the growth of informal work in Brazil is directly related to the reduction of government capacity to oversee labor standards. In 2024, the informality rate reached 31.77%, the highest rate since 2012, even with the unemployment rate recorded at 6.6%, the lowest in the same period. Ipea points out that the amount of labor tax auditors decreased by 34.1% between 2012 and 2024, while the number of workers with a formal contract increased by 11.4%. In 2012, there were 19,038 workers for each auditor, a number that jumped to 34,260 in 2024, far above what is recommended by the International Labor Organization (ILO).
The study suggests that the inclusion of 1,800 new tax auditors could result in an increase in social security and fines, estimated at R $ 879 million, exceeding the annual cost of R $ 560 million for these hires. To date, the competition for tax auditors has summoned 900 candidates, with another 900 in the waiting list. Finally, research concludes that budget limitations should not be an obstacle to the recovery of the state’s ability to regulate the labor market and ensure the protection of workers’ rights.
*Report produced with the aid of AI
Polished by Luisa Dos Santos
