The Growth of the Elderly Population in Brazil and Its Challenges in the Labor Market

Brazil is going through significant demographic changes. Recently, it was announced by IBGE that the employment rate of the elderly population reached the highest level since statistics began to be collected in 2012. In 2024, about 24.4% of people aged 60 or over were actively in the labor market, which means that, on average, one in every four elderly people was working.

Factors Influencing Employment Among the Elderly

This growth in employment among the elderly is a reflection of several social and economic changes. One of the main reasons is the increase in life expectancy, which has led people to live longer and, consequently, seek ways to support themselves for longer. In addition, family arrangements have changed; many elderly people now depend less on their families and seek financial independence.

Another important factor is the high rate of informality in the labor market. Many elderly people end up accepting unregistered jobs, which becomes a viable alternative to supplement family income. This shows how the Social Security reform in 2019 also had a significant impact, making many elderly people feel the need to remain active in work.

Underutilization and Unemployment Rates

IBGE data also revealed that the underutilization rate among the elderly fell to 13.2%, below the average of 16.2% in previous years. The unemployment rate, in turn, reached 2.9%, one of the lowest rates recorded since 2021. It is interesting to note that the lowest employment rate was in 2020, when only 19.8% of the elderly were employed, but since then this rate has been growing.

The Profile of Elderly People in the Labor Market

In 2024, the elderly population of Brazil was composed of 34.2% men and 16.7% women, which reveals a significant disparity of 17.4 percentage points. Almost half of men between 60 and 69 years old were in the labor market, while only 26.2% of women in that age group were employed. This shows that, although women's participation in the labor market is increasing, there is still a long way to go to achieve equality.

Formal and Informal Work

It is important to highlight that most elderly people who are working do so as self-employed workers or as employers. In 2024, about 51% of employed elderly people had more than one job position. However, the formalization rate in this group is worrying, as only 44.3% of the elderly were in formal jobs, compared with 59.4%% of the general average.

Informality affects 55.7% of the elderly, with alarming data for those who identify as Black or mixed race (pardo), where only 38.8% were in formal jobs. This illustrates a significant inequality in the labor market that still needs to be addressed.

Income of the Elderly in the Labor Market

When it comes to income, the scenario is equally revealing. The average usual income for people aged 60 or over was R$ 3,561, which represents a difference of 14.6% compared with the average of all workers. However, elderly women earn significantly less, with an average income of R$ 2,718, almost 33.2% less than men, who earn R$ 4,071.

In addition, racial inequality is also reflected in income, where elderly Black or mixed-race people have an average income of only R$ 2,403, which is 48.7% lower than the income of white people, which is R$ 4,687.

Final Considerations

The growth of the elderly population in Brazil and its insertion into the labor market raise important questions about equity and working conditions. As the population ages, it will be necessary to think about public policies that guarantee not only inclusion but also dignity at work for this part of the population. You, what do you think about the impact of the elderly population on the labor market? Leave your opinion in the comments!