Record income and falling inequality in 2024: small businesses drive progress in the country

In 2024, Brazil reached the lowest record of income concentration ever recorded in the historical series of the Continuous National Household Sample Survey (PNAD-C), which began in 2012. According to data released by the Brazilian Institute of Geography and Statistics (IBGE), family income also reached an unprecedented level, which helps explain the significant reduction in social inequality.

The Gini Index, which measures income inequality, reached 0.506 in 2024, down from 0.518 in 2022 and 2023. This result reflects a 17.6% growth in per capita income of the poorest 5%, compared to a 4.7% increase in the national average. Meanwhile, the richest 10% saw their income grow by just 1.5%.

According to the IBGE, this reduction in inequality is not only due to social income transfer programs. The labor market also played a crucial role, with the average income from all jobs rising more sharply for those who earn less. Job creation and the minimum wage adjustment policy drove this movement, boosting wages and also benefiting retirements, pensions and the Continuous Benefit Payment (BPC).

Role of Small Businesses

In this scenario of economic recovery and social inclusion, small businesses stand out as drivers of transformation. They are the ones that have generated the majority of jobs, boosting income in local communities and offering opportunities to people who were previously on the margins of the job market.

According to a survey by Sebrae based on data from the General Registry of Employed and Unemployed Workers in Brazil (Caged), micro and small businesses (MSEs) generated almost 60% of jobs in March. In the year to date, MSEs continue to be the largest generators of employment and income, accounting for 369,341 (56.4%) of the 654,503 new hires.

For the president of Sebrae, Décio Lima, By creating an environment that is favorable to entrepreneurship, Brazil paves the way for a fairer and more prosperous future for all. .

“The measures taken by the government of President Lula and Vice President Geraldo Alckmin have contributed to reducing poverty and inequality in Brazil. The IBGE data are a sign that we are on the right track, and we reaffirm our commitment to supporting small businesses, which are essential for job creation, income generation and social inclusion,” he says. “We believe that, with effective public policies and entrepreneurship as a driver of development, we can build a fairer and more prosperous Brazil for all,” he says.