July 7, 2020

Brazil lost 1.1 million formal jobs in the accumulated until May

The number of Brazilians with formal employment contracts decreased by 1.14 million in the accumulated from January to May, compared to the same period in 2019, largely as a result of the stoppage of activities due to the pandemic, reported Monday. government.

According to the data disclosed by the Ministry of Economy, only in May of this year 321,140 formal jobs were eliminated, as a result of the difference between the admission of 703,921 workers with all labor and social guarantees and the dismissal of 1,035,822 people who they had a formal plaza.

With the data for May, there are already 1,144,875 formal jobs that Brazil has lost in the year accumulated.

On the contrary, in the same period of 2019, 351,063 new formal jobs were generated in the country.

According to the Government, the negative result for May was due to the drop in admissions, by 48% compared to the same month in 2019.

However, in the comparison with April, the number of jobs increased by 14%, especially due to the reopening of construction, one of the first sectors to resume activities in Brazil amid the crisis caused by the coronavirus pandemic.

The number of places opened in the construction sector increased by 41.5% in May compared to April, followed by agriculture (28%) and commerce (20%).

The only economic sector that registered a positive result in May in comparison with the same month last year was agriculture, with the generation of 15,993 formal jobs.

The result for the year accumulated was also positive in agricultural activity, with the creation of 25,430 formal jobs, while in other economic activities the balance was red.

Between January and May 2020, the service sector eliminated 143,479 formal jobs, industry 96,912, commerce 88,739 and construction 18,758.

According to the Ministry of Economy, the situation would have been worse if it had not implemented an emergency measure by which it promised to pay part of the wages of employees who had working hours and reduced wages by companies that agreed not to fire your employees.

The so-called Emergency Employment and Income Preservation Program, which only entered into force on April 1, currently serves 8.1 million formal employees, who keep their jobs but remain at home or work short hours and with discounts proportional in salary.

According to official figures, social distancing measures left 19 million Brazilians provisionally out of work in May, of which 9.7 million were without performance that month.

The Central Bank, in the report in which it disclosed its new projection for the Brazilian GDP this year and in which it began to foresee a contraction of 6.4%, calculates that household consumption, the main engine of the economy in this country of 210 million inhabitants, 7.4% will retract this year due to the fall in income.

With nearly 58,000 deaths and more than 1.34 million infected, Brazil is the second country in the world most affected by the pandemic behind the United States.


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