The unemployment rate in Brazil has suffered significant reduction from the beginning of the twenty-first century to end of 2014. However, this significant reduction was not accompanied by the expected economic growth. Thus, it appears that although the unemployment rate has been reduced, people were not necessarily working or producing. This study will try to understand the factors that influenced this low unemployment trend by influencing the labor force and the number of employees hired in the formal market, which will approach the supply and the demand for labor. In other words, it intends to check the variables that have influence in a possible reduction of labor supply, as well as an increased demand for labor, that resulted in a reduction in the unemployment rate. We will consider income, transfer, education and economic growth variables in the analysis. Based on a vector error correction model (VEC) it is intended to identify variables that actually affect the outlook of unemployment.