Country creates 316,580 job vacancies in June, 7th positive month

Brazil opened 316,580 formal job vacancies in July, in the seventh consecutive month of positive balance, according to data from Caged (General Register of Employed and Unemployed) released today by the Ministry of Labor and Social Security. This result resulted from 1,656,182 admissions and 1,339,602 shutdowns.

The total number of registered jobs in the country added up 41,211,272 in July, which represents a variation of 0.77% compared to the previous month. In the accumulated up to July, the balance in the creation of formal jobs is positive in 1,848,304 vacancies.

The expectation of market analysts, consulted in a survey by the Reuters news agency, was opening 250 thousand jobs. In July last year, Brazil had created 137,014 jobs at a time when the country was still facing measures to combat the covid-19 pandemic.

The positive numbers from Caged contrast with the unemployment rate in the country of 14.6% in the March-May quarter, the most recent data from the IBGE (Brazilian Institute of Geography and Statistics). The number refers to the total number of jobs, with and without a formal contract.

This is the first release of Caged data made by the Ministry of Labor and Welfare, a folder headed by Onyx Lorenzoni. Until then, the information was passed on by the Ministry of Economy, led by Paulo Guedes.

Minister says data could be better without ‘closes everything’

In a virtual press conference after the release of the data, minister Onyx Lorenzoni endorsed President Jair Bolsonaro’s (non-party) speech, contrary to the restriction measures adopted by states and municipalities to curb the spread of covid-19.

According to the minister, Brazil was one of the countries that responded best to the pandemic, and the lockdowns did not work anywhere in the world. However, the statement contradicts international studies that point to the effectiveness of measures of social restriction and isolation in reducing covid cases and deaths-19.

Furthermore, according to data from the Our World in Data platform, linked to the University of Oxford, Brazil is the second country in the world with the highest number of deaths by covid-19 (576,645 until yesterday), only behind the United States (632,272 ).

Imagine what numbers we would be talking about now if Brazil had not practiced the closures that governments promoted last year and part of this year. Unfortunately, some leaders preferred opportunistic narratives to attack President Bolsonaro’s government.
Onyx Lorenzoni, Minister of Labor and Welfare

All 5 sectors had a positive balance

Data from Caged point to a positive balance in the level of employment in the five groups of economic activity.

  • Services: (+127,751 stations)
  • Trade, repair of motor vehicles and motorcycles: (+74,844 service stations)
  • Industry: (+58,845 jobs)
  • Construction: (+29,818 posts)
  • Agriculture, livestock, forestry, fishing and aquaculture: (+25,422 posts)

Regions

Also according to the data, there was a positive balance in the generation of formal jobs in the five Brazilian regions:

  • Southeast (+161,951 jobs, +0.77%)
  • Northeast (+54,456 jobs, +0.83%)
  • South (+42,639 posts, +0.55%)
  • Midwest (+35,216 posts, +1.01%)
  • North (+22,417 posts, +1.18%)

Admission wages have a slight drop

The average admission salary in July was R$1,801.99 —compared to the previous month, there was a real reduction of R$22.72 in the average admission salary, representing a drop of 1.25%.

Also in July, there were 21,603 admissions and 13,938 dismissals in the intermittent work modality, generating a balance of 7,665 jobs.

New methodology

Since January last year, the use of the Caged System has been replaced by eSocial (Digital Bookkeeping System for Tax, Social Security and Labor Liabilities) for companies, which brings differences in comparison with results from previous years.

In the previous methodology (from 1992 to 2019), the best result for June in the series without adjustments was in 2008, when 309,442 thousand vacancies were created in the sixth month of the year.