Economy

Brazil generated 1.8 million formal jobs in the first half of 2021

In the same period of 2020, 1,092,578 formal vacancies had been closed

Photo: REUTERS/Amanda Perobelli
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  • In July, when 316,580 formal jobs were created, the service sector accounted for the net creation of the largest number of them (127,751), followed by commerce (74,844 jobs);
  • Dismissals have been contained in the formal market by the BEm employment stimulus program, which offers an income supplement to workers whose contracts are temporarily suspended or who suffer a reduction in working hours and wages due to the COVID-19 pandemic impacts.

Latin America‘s largest economy, Brazil registered 316,580 formal job vacancies in July, according to data from the Ministry of Economy released on Thursday. The country now accumulates the creation of 1,848,304 formal jobs in the first half of 2021. In the same period of 2020, 1,092,578 formal vacancies had been closed.

Commenting on the data, the minister of Labor and Welfare, Onyx Lorenzoni, said that the country is expected to finish the year with “much more” than 2.5 million new formal jobs. In July, the service sector accounted for the net creation of the largest number of jobs (127,751), followed by commerce (74,844 jobs).

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Dismissals have been contained in the formal market by the BEm employment stimulus program, which offers an income supplement to workers whose contracts are temporarily suspended or who suffer a reduction in working hours and wages due to the COVID-19 pandemic impacts. This year, 3.271 million agreements were made within the scope of the program.

Implemented for the first time in 2020, BEm ends this month. A Provisional Measure pending in Congress provides for an extension only for pregnant workers, so the number of employers effectively protected will gradually decline in the months ahead.

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“We project a gradual deceleration in net job creation going forward, especially due to the lower number of employment agreements governed by BEm and more moderate hiring rates in the services and trade sectors (which should become more evident from the last quarter of 2021 onwards)”, said XP economist Rodolfo Margato in a statement.

Translated by LABS

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