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Rising Income and Decreasing Unemployment Among Young Brazilians as Higher Education Enhances Job Market Entry Amid New Challenges from AI
A study released on Saturday (19) by Folha shows a significant change in the situation of Brazilians aged 18 to 29: young people are more educated, earning higher incomes, and facing one of the lowest unemployment rates since 2012.
The research conducted by Paulo Peruchetti and Janaína Feijó from FGV Ibre uses data from the second quarter of 2026 from the Continuous National Household Sample Survey (Pnad Contínua) from the Brazilian Institute of Geography and Statistics (IBGE). The average monthly income for young people reached R$ 2,593 (about US$ 476), the second highest recorded for this age group.
These figures emerge during a broader improvement in the Brazilian job market. Nevertheless, young workers continue to earn less and face an unemployment rate higher than that observed among professionals aged 30 to 59.
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The survey also introduces an element that is gaining traction in discussions about employment in 2026: artificial intelligence. Recent studies from FGV Ibre indicate that younger workers are among the groups most affected by changes caused by generative AI.
Young Adults’ Income Reaches One of the Highest Levels Recorded
The recent income increase has not eliminated the gap between generations.
In the second quarter of 2026, workers aged 18 to 29 earned an average of R$ 2,593 per month, a figure only surpassed in the first three months of the same year.
For professionals aged 30 to 59, the average income was R$ 4,167.
In comparison, young workers earned 37.8% less.
The discrepancy is also evident when compared to the country’s general average of R$ 3,738, where the income of younger workers was 30.6% lower.
Higher Education Helps Increase Earnings
Part of this recovery is attributed to a transformation unfolding even before the first job: young Brazilians are spending more time in school and entering the job market with higher levels of education.
In 2012, only 11% of individuals aged 18 to 29 had completed higher education.
By the second quarter of 2026, that share had risen to 16.8%.
Conversely, the proportion of young people without education or only with incomplete primary schooling plummeted from 17.6% to 5.6%.
The effect of this change can be quantified financially.
According to Paulo Peruchetti, if the educational structure of young people had remained the same as observed in 2012, the current average income for the group would be approximately R$ 2,381 (about US$ 455) per month.
This represents about 8% less than the R$ 2,593 actually recorded.
Thus, education does not eliminate generational differences, but it helps to prevent them from becoming even more pronounced.
The researcher himself emphasizes that educational improvements have also benefited older workers, though they carry particular weight for those still trying to secure professional space and gain experience.
Education Does Not Eliminate Challenges in Securing Employment
This transformation is evident in stories such as that of Emily Carla, 20 years old.
After studying in public schools in underprivileged neighborhoods, she began seeking courses and training programs while still in high school until she secured a full scholarship to study journalism at a private university.
The path to a job opportunity, however, came with rejections.
Emily reported that some positions became unviable because she was studying full-time, while others required a level of education she had not yet reached.
“I had to deal with several ‘no’s before I got an opportunity,” she stated.
The unemployment figures help explain why experiences like this remain common.
In the second quarter of 2026, 9.2% of the population aged 18 to 29 was unemployed.
This was the second lowest rate in the entire series that began in 2012, surpassed only by the 8.8% recorded in the last three months of 2025.
Even close to the historic low, the gap between age groups remains significant.
Among workers aged 30 to 59, unemployment stood at 3.8% during the same period.
The youth unemployment rate was therefore more than twice as high.
Informality Still Burdens the Youth Job Market
Another obstacle arises after a job is found.
Informality affected 37.4% of workers aged 18 to 29 in the second quarter of 2026.
This percentage matched the national average but was higher than the 34.8% recorded among professionals aged 30 to 59.
The combination of lesser experience and a high presence in informal jobs helps explain part of the wage disparity.
According to a survey by FGV Ibre, some of the occupations that employ the most young people are in lower-paying activities.
Sales clerks and retail sellers amounted to about 1.7 million workers aged 18 to 29, equivalent to 6.6% of the group.
General clerks represented another 1.5 million, or 6.1%, while elementary construction workers reached approximately 617,800, or 2.5%.
Artificial Intelligence Alters the Entry Point for Young People
There is also a more recent transformation entering this equation.
Artificial intelligence is starting to alter precisely the activities used as entry points for those still building their professional experience.
A study conducted by researcher Daniel Duque, also from FGV Ibre, found signs of reduced employment probability and income among young people engaged in professions more exposed to generative artificial intelligence.
The analysis compares workers with similar characteristics before and after the popularization of these tools and recommends caution, as the available data still covers a relatively short period.
The issue goes beyond simply asking whether AI will “take jobs.”
Research from FGV Ibre shows that nearly 30 million Brazilian workers were, in the third quarter of 2025, in occupations with some degree of exposure to generative AI.
Depending on the activity, technology can replace certain tasks or function as a complementary tool for professionals.
For young people, this process draws attention because many entry-level roles involve precisely the standardized tasks that have been used for decades as a kind of first professional step.
The more these activities change, the greater the importance of qualification, adaptation, and knowledge of new tools.
Courses and qualifications are gaining space at the start of a career
Maria Rita Meira, 22, noticed this transformation while studying advertising.
In conversations with peers, she observed a decline in the availability of some junior-level positions.
After working in various sectors, she secured her first job at an agency and began investing in courses to enhance her education.
Another case presented in the study is Thaina Silva, 25.
After leaving her job as a caregiver during a high-risk pregnancy, she started selling food from home.
Cooking and finance courses helped her advance in starting and formalizing a snack bar, as well as motivated her to seek further qualifications.
These cases help to put the numbers in perspective.
Brazilian youth are entering the job market with higher education and are encountering better employment indicators than those observed at various times since 2012.
At the same time, they remain more exposed to unemployment, informality, and lower wages compared to more experienced workers.
Technological change adds a new element to this process.
While for years the main challenge was entering the market and gaining experience, it is now also important to consider which tasks will serve as entry points and what knowledge will be required from those starting a career.
