April 22, 20 - 5:22 pm - LABS

Brazilian industrial sector and commerce foresee more cuts in staff

As the new coronavirus crisis intensifies, more companies in the industrial and commercial sectors are promoting layoffs in Brazil. As reported by Valor Econômico, according to a survey of the Machinery and Equipment Industry Association in the country, carried out between March 30th and April 3rd, and based on a sample of its associates, 21.5% of the Brazilian industries have already dismissed part of their employees (about 16.4% of the staff) due to the pandemic.

There were about 11,000 direct jobs closed (3% of the sector’s workers). The survey also points out that 63% of the businessmen have opted to offer individual vacations to 27% of the employees during this isolation period.

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A third of the companies interviewed have already sought credit for working capital in banks and 48% have done it in order to pay the payroll.

Another survey, commissioned by the micro and small industry union of the State of Sao Paulo (Simpi), reveals a similar situation. The survey listened to 208 industries from the region on April 13th and 14th. Although 64% of respondents consider their current financial situation to be bad or terrible, and 53% said it has worsened in the past ten days. The share of companies that have already laid off since the beginning of the crisis is still not a majority (18%).

However, for 71% of respondents, Brazilian government measures did not reach their companies and 91% say they don’t have access to credit. For trade and services, the association of bars and restaurants, called Abrasel, says that about 350,000 jobs were closed until April 10th.

Overall, if support does not reach these companies, industry, and commerce can cut up to 3 million jobs in the country.