Economy

Brazil recorded 414,556 formal jobs in November

Despite the positive data that has been shown, more recent figures from the Brazilian Institute of Geography and Statistics indicate that the unemployment rate in the country reached a new record of 14, 6% in the third quarter

Photo: REUTERS/Amanda Perobelli
  • In the accumulated result for the year, there was a net creation of 227,025 job vacancies;
  • Since last month, Brazil’s Minister of Economy, Paulo Guedes, had reiterated in public speeches the expectation of zero loss of formal jobs in 2020.

Brazil opened 414,556 formal job vacancies in November, a record for all months of the historical series of the General Register of Employed and Unemployed (Caged, in Portuguese) started in 1992, a performance that took the balance of the year into positive territory despite the impact on the labor market of the coronavirus pandemic.

This was the fifth consecutive month in which Caged was positive, the Ministry of Economy reported on Wednesday, arguing that the performance confirms the resumption of economic growth after the most critical phase of the COVID-19 outbreak in the second quarter of the year.

READ ALSO: Brazilian Research Institute improves GDP growth forecast in 2021 to 4%

In the accumulated result for the year, there was a net creation of 227,025 job vacancies.

Since last month, Brazil’s Minister of Economy, Paulo Guedes, had reiterated in public speeches the expectation of zero loss of formal jobs in 2020, in a performance strongly supported by the Emergency Program for Maintaining Employment and Income.

Valid until December 31, the program allows temporary reduction of wages and work hours or the suspension of the employment contract, with the payment of partial compensation by the government to workers.

READ ALSO: Brazil’s inflation projections remain high, market reduces forecast for exchange rate

The benefit paid by the government corresponds to part of the unemployment insurance to which the worker would be entitled in case of dismissal. Today, unemployment insurance ranges from a minimum wage BRL 1,045 to BRL 1,813.03.

According to the government, the program allowed more than 20 million agreements between employees and employers in Brazil, covering 9.8 million workers.

As of the day before, the government has spent BRL 32.6 billion on the program, with a total budget of BRL 51.6 billion.

On Tuesday, the Ministry of Economy reported that BRL 7.7 billion in payments for the program should be made only in 2021.

In November, the opening of posts was driven mainly by the services sector, with 179,261 new vacancies, and commerce, with 179,077.

Next came industry (+51,457) and construction (+20,724), while in agriculture there were 15,353 jobs closed.

Despite the positive data that has been shown in Caged, more recent figures from the Brazilian Institute of Geography and Statistics (IBGE), released in November, indicate that the unemployment rate in the country, which also includes informal work, reached a new record of 14, 6% in the third quarter, with the number of unemployed reaching 14.092 million at the end of the period.

(Translated by LABS)

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