A jump in revenue signals the resumption of the job market – News

The real increase (after inflation) of 16.6% in social security collection over the month of July, compared to the same period last year, proves that there is a process of resumption of signed contracts in Brazil.

According to data from the Federal Revenue, the volume of pension gains jumped to BRL 38.957 billion in June and accumulates collection of BRL 260.2 billion in 2021, which corresponds to an even greater advance, of 17.7%, for the seven first months of the year.

“We can certainly say that the result points to a resumption of the formal labor market”, says Angelo Peccini Neto, tax lawyer at the office Peccini Neto Advocacia and CEO of XP Compliance.

Social security revenues are in line with the latest data from Caged (General Register of Employed and Unemployed), which indicate the opening of 316,580 jobs with a formal contract in July and 1,848,304 in the first seven months of 2021.

Formal hiring was also listed by the PNAD (National Household Sample Survey) as determinants for the recoil of 0.5 percentage point of the vacancy between April and June, to 14.1% of professionals of working age.

According to a survey by the IBGE (Brazilian Institute of Geography and Statistics), which points to 14.4 million people outside the labor market, there was a 2.1% growth in the number of workers with a formal contract in the second quarter.

According to federal counselor Carlos Eduardo Soares, from Cofecon (Federal Economics Council), the tax collection data released by the tax authorities really point to a positive result in the labor market.

For Soares, performance is driven by advances in vaccination against covid-19 in Brazil. “We can point out that people have started to get vaccinated and look for jobs, which is relevant and reflects in a greater collection by the INSS”, he explains.

Peccini also cites the gains from the Refis (Fiscal Recovery Program), the deferrals of the term for payment of the Simples Nacional in the period and the bad situation created by the pandemic in the middle of last year as reasons for the resumption of collection.

“At the beginning of the second half of last year, we were leaving the first wave of deaths and we still had an indecision about vaccination. The companies were going through difficulties and that was when the government started to discuss additional alternatives, because the reduction in wages and working hours had already been carried out”, reinforces the tax expert.

With the data, the experts consulted by the R7 indicate that the new Caged is more faithful in relation to the current situation in the labor market, since PNAD data are released with a greater lag. “Nobody runs away from Caged, because it, in one way or another, has the parameters of the employment situation in Brazil”, emphasizes Peccini.

However, Soares emphasizes that the IBGE numbers are not incorrect and only use a different collection, with the information provided by informal professionals. “You cannot distort the Pnad numbers, which show a great demand for jobs and discouraged people, who are not looking for a job, and make up the large number of unemployed people in the country”, he observes.