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Brazil Faces Crisis as New Data Reveals Alarming Rates of Youth Unemployment and School Dropouts, with Joblessness More Than Double the National Average and High Informality Among Teens

Author profile image Alisson Ficher
Written by Alisson Ficher Published on 26/06/2026 at 18:19
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Survey by the Ministry of Labor exposes the gap between youth, school, and market, with millions of Brazilians out of both fronts, high unemployment at the start of their careers, and concentration of vacancies in low-specialization roles.

In the first quarter of 2026, Brazil had 6.2 million young people aged 14 to 24 neither studying nor working, according to a survey by the Ministry of Labor and Employment released this week.

This group represents a significant portion of the 32.9 million Brazilians in this age group and keeps the so-called “neither-nor” generation as one of the main social alerts related to youth in the country.

The data are part of the Diagnosis of Brazilian Youth, prepared by the MTE from the cross-referencing of information from the Continuous PNAD, IBGE, RAIS, and eSocial.

The research portrays a youth that stays in school longer but still faces partial employment recovery, difficulty accessing stable occupations, and a strong concentration in low-skilled positions.

Neither-nor youth in Brazil

Among Brazilians aged 14 to 24, the contingent of “neither-nor” youth reached 18.7% in the survey cited by the Ministry of Labor and Employment.

When addressing the same diagnosis, UOL recorded the proportion as 18.8%, a difference related to the rounding of data, as both publications start from the same total of 6.2 million young people in this condition.

Compared to the end of 2025, the snapshot of the first quarter shows an increase of about 700,000 people out of school and work between January and March.

This movement was attributed to the seasonality of the period, marked by the end of temporary contracts, the restart of the school calendar, and common adjustments at the beginning of the year.

Despite the temporary increase, the diagnosis indicates that the simultaneous absence of study and work cannot be explained solely as a lack of individual interest.

Barriers to professional insertion, low availability of suitable vacancies, family responsibilities, and difficulty reconciling income, study, and commuting help compose the scenario identified in the survey.

The Undersecretary of Labor Statistics and Studies at the MTE, Paula Montagner, told Agência Brasil that the first effort should be to bring these young people back to school.

According to her, staying in school can be combined with work when there is a need for income, provided there are conditions to reconcile education and occupation.

Education and Labor Market

Although the number of young people out of school and work is noteworthy, the majority of the population aged 14 to 24 is engaged in some form of study or occupation.

According to the survey, 13.9 million young people were employed, while 12.8 million were only studying and another 4.3 million were balancing study and work.

Outside the classrooms but in the market, there were 9.6 million people who were only working, without attending school, college, or another formal education stage.

This group helps explain the uneven transition between education and employment, especially among young people who put education on the back burner to seek income earlier.

According to the MTE, the participation of adolescents aged 14 to 17 in the workforce, estimated at 15.6%, indicates greater retention of this age group in school.

Among young people aged 18 to 24, on the other hand, the participation rate reached 68.7%, but has not yet returned to the level observed before the pandemic.

The report also indicates educational progress among Brazilian youths, with at least 73% of them having at least a high school education, according to data released by Agência Brasil.

In the same segment, 2.3 million were attending higher education and 944 thousand had already completed this stage, indicating a greater presence of youth in higher levels of schooling.

Youth Unemployment

Even with improvements in the labor market, the gap between young people and adults remains significant when comparing unemployment at the start of a professional life.

In the first quarter of 2026, the unemployment rate among people aged 18 to 24 was 13.8%, more than double the national average of 5.8%.

Among adolescents aged 14 to 17, the rate reached 25.1%, showing an even greater barrier for those trying to enter the market before adulthood.

In absolute numbers, the survey cited by Agência Brasil points to 2.7 million young people aged 18 to 24 unemployed and 586 thousand adolescents in the same situation.

Entering the market, therefore, remains more difficult for those with little experience, ongoing education, or a professional path still under construction.

Paula Montagner stated that youth unemployment has halved since the peak of 2021, but emphasized that the first stage of a career still presents specific obstacles.

According to her, many young people continue studying or balancing school and work, while another part remains unable to find employment even when seeking a position.

Signed Work Card and Informality

Besides unemployment, the quality of the employment relationship also appears as a central point in the diagnosis of Brazilian youth and the labor market.

Among employed youths aged 14 to 24, 57.8% had a formal contract, equivalent to 8 million workers, according to Rais 2025 cited by Agência Brasil.

Even so, informality remains more prevalent among groups with lower education levels and in the North and Northeast regions, according to data addressed by UOL.

Securing the first job, however, does not end the challenge, as job retention also proves limited for a significant part of the employed youth.

Among teenagers aged 14 to 17, 52% stayed less than a year in the same job, according to the survey released by Agência Brasil.

In the group aged 18 to 24, this proportion was 38.2%, a percentage that reinforces the high turnover precisely at the initial stage of the professional journey.

The concentration in low-specialization roles helps explain part of this scenario, especially when observing the type of occupation available to young people.

The report indicates that sales clerks and vendors totaled 1.24 million young people, followed by general clerks, with 1.07 million, in addition to construction assistants, receptionists, and cashiers.

According to the MTE, 59% of employed youths were in the 20 largest occupations, and one in five worked in clerical or retail sales.

The assessment released by the agency is that youth employment is concentrated in a few commerce and service roles, with low specialization and wages close to the minimum.

Also according to Deputy Secretary Paula Montagner, there is a myth surrounding the idea that young people do not want jobs with a signed work card.

For her, the issue involves dialogue, flexibility, and support, especially when the worker is still in training and needs to balance school and professional obligations.

The survey shows a picture of advances and limitations, with more educated youths, a significant portion already employed, and formalization above half among workers aged 14 to 24.

Even so, millions remain away from school and employment, while youth unemployment remains well above the national average and market entry continues to be marked by instability.

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Alisson Ficher

A journalist who graduated in 2017 and has been active in the field since 2015, with six years of experience in print magazines, stints at free-to-air TV channels, and over 12,000 online publications. A specialist in politics, employment, economics, courses, and other topics, he is also the editor of the CPG portal. Professional registration: 0087134/SP. If you have any questions, wish to report an error, or suggest a story idea related to the topics covered on the website, please contact via email: alisson.hficher@outlook.com. We do not accept résumés!

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