Socioeconomic Dynamics and Multidimensional Inequality in Pernambuco Between 2012 and 2023
Economic dynamics; Labor market; Pernambuco; Metropolitan Region of Recife; Multidimensional Inequality
The state of Pernambuco has faced a reversal in the economic trajectory observed in the early 2000s, particularly from 2007 onwards. Since 2014, fluctuations in the Brazilian economy have negatively impacted the recent improvements in the state’s socioeconomic indicators, with repercussions across its various regions. In this context, the present study aims to discuss Pernambuco’s socioeconomic dynamics by differentiating between the Recife Metropolitan Region (RMR) and the Non-Metropolitan Region of Recife (RNMR) over the period from 2012 to 2023. To achieve the research objectives, a qualitative and quantitative analysis was conducted on the subject, using statistical data published by IBGE surveys and estimating the Multidimensional Socioeconomic Insufficiency Index (MSII) as a means to analyze inequality from a multidimensional perspective. The study reveals the following: i. Pernambuco’s interior showed higher annual average economic growth rates than the RMR, increasing its share in the state’s GDP; ii. The Gross Value Added (GVA) of the industrial sector in the RMR lost share in both the region’s total GVA and the state’s industrial GVA; iii. There was an increase in unemployment and informality rates in the state’s labor market, with the most significant figures observed in the RMR; iv. Average labor income rose in the RNMR, although it remains below the state average; v. Multidimensional inequalities, as measured by the IISM, followed different trajectories across the state’s regions: while the interior exhibited a downward trend in this indicator over the years, the MSII increased in the RMR between 2016 and 2019 but registered a decline in 2022, reaching a level below that of 2016; and vi. The positive results of the MSII in Pernambuco are attributed to social policies (education, emergency aid, and access to services), highlighting the importance of state action during crises. In conclusion, Pernambuco experienced declines in its economic indicators due to economic fluctuations during the period under review. Among its regions, the RMR was more severely affected, as evidenced by economic indicators, particularly those related to the labor market, the performance of the MSII.