Small businesses lead generation of new jobs in July

Of the total balance of 316,580 new hires made in July, just over 72%, which gives 229,368 formal jobs, were created by micro and small companies. The data are from the Micro and Small Business Support Service (Sebrae), based on statistics from the General Register of Employed and Unemployed Persons (Novo Caged), updated monthly by the Ministry of Labor and Social Security.

Among medium and large companies, the balance of jobs created in July was 73,694 jobs, which represents 23.3% of the total. In the same period, the public administration carried out 712 contracts (0.22%).

Sebrae considers a micro-enterprise that has up to 9 employees, in the case of the agricultural, commerce and services sectors. In industry, micro companies are those with up to 19 employees. Small companies are those with between 20 and 99 employees, in the case of the industrial sector; or from 10 to 49 employees, in the case of the agricultural, commerce and services sectors.

In 2021, data from the new Caged show that more than 1.8 million formal jobs have been created in Brazil. Micro and small companies accounted for 1.3 million (70%) of these vacancies, while medium and large companies generated just over 413 thousand (22%). To give you an idea, in 2020, the formal balance in job creation was negative for small businesses, with the closing of 679 thousand jobs.

Services recover

The service sector, which was one of the hardest hit by the covid-19 pandemic, has shown signs of recovery and was the segment that made the most new hires in July.

According to a survey carried out by Sebrae, of the more than 229,000 new jobs created by micro and small companies during this period, 94,200 were in the service sector, which corresponds to 42% of the new jobs created by small businesses.

For Sebrae, the result confirms a trend that had already been verified in the last Survey of Micro and Small Companies, carried out monthly by the entity in partnership with the Getúlio Vargas Foundation (FGV). Among the factors driving the sector are the increase in vaccination and the reduction in cases of covid-19.

In addition to the service segment, all other sectors of the economy, including micro and small companies, showed positive results in terms of job creation. Commerce was responsible for 65.8 thousand new jobs, followed by the transformation industry (36.5 thousand), civil construction (26.2 thousand) and agriculture (4 thousand).