First of all, it is important to highlight that the crisis suffered by the country due to the pandemic and all its consequences is the origin of the current drop in incomes in Brazil, which reached the lowest number of the last 10 years. The IBGE reported that the average income in Brazil fell dramatically, breaking a record in 2020, compared to the numbers of 2012.
Studies point to a reduction in the average monthly income of Brazilian families. The percentage, which before (2019) were BRL 2,292.00, passed to BRL 2,213.00 last year, amounting to a drop of 3.4%, already reducing inflation.
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Along these lines, the institute informs that more than 8 million Brazilians had no formal income in 2020. It also indicates that people who had income from work reduced from 92.8 million (2019) to 84.7 million (2020).
However, the study also shows that the number of people who were receiving another type of income increased. The numbers went from 16.4 million to 30.2 million in the same period mentioned above.
Percentages related to the topic
It should be noted that due to the pandemic, the number of retirees and pensioners reduced from about 13% of the Brazilian population in 2019 to 12.4% in 2020. This equates to a reduction from 27.4 million (2019) to 26.2 million (2020).
In addition, there is the so-called "other income" composed of amounts received through government assistance programs and, due to emergency aid, increased significantly.
Regarding this group of people, in the analyzed period, from 2019 to 2020, there was an increase of 0.7% to 23.7, as well as the Northeast and North regions were the ones that grew the most, from 0.8% to 34% and from 0.5% to 32.2%, respectively.
This sharp number in the Northeast is due to the increase in people receiving government assistance and the reduction of those who work.
Finally, it should be noted that the Northeast region was the only one in Brazil that registers workers with income lower than that of people who received income from other sources, in a ratio of 32.3% to 32,8%.
Thus, based on all these numbers, it is possible to understand the reasons why there has been a reduction in the value of the average income of Brazilians in the last ten years.
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