Half of the wage increases negotiated until October do not restore inflation; find out how this will affect 2022 | Economy

With the high rates of inflation and unemployment in Brazil, 49.8% of the 12,334 salary readjustments negotiated from January to October this year were below the National Consumer Price Index (INPC). That is, they offered less purchasing power to the worker.

In addition, 10% (1,321) of inflationary replacement agreements were paid in installments and paid gradually by employers — a sevenfold jump (199) compared to the same period in 2020, reported the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese) to g1 (see infographics below).

  • Inflation and unemployment weaken workers;
  • 49.8% of the salary readjustments from January to October are below inflation;
  • Number of salary adjustments paid in installments by employers grows seven times from 2020 to 2021;
  • With less purchasing power, workers must consume less in 2022;
  • ripple effect should result in drop in consumption and, later, of production.

Salary adjustments in Brazil — Photo: g1

Less than two months before 2022, Luis Ribeiro, technician at Dieese, says that workers lost strength in relation to employers in this year’s collective bargaining and, for this reason, they were harmed in relation to salary, benefits and career plan.

“The scenario is bad. The fact that most categories are not replacing inflation will generate a ripple effect in 2022, with a drop in purchasing power, consumption and, consequently, in production”, analyzed Ribeiro.

According to the sociologist, even if the collective negotiations in November and December generate positive results for workers, the balance for 2021 will be bad, since the information accumulated so far has been negative. “There is still a need for adjustments by metallurgists, oil workers and bank workers. Even so, it is difficult for good negotiations to reverse the numbers, said Ribeiro.

In the assessment of Hélio Zylberstajn, senior professor at the Faculty of Economics of the University of São Paulo (USP), the job market went through a period of extreme difficulty due to the Covid-19 pandemic and, even with the advance of vaccination, it was not able to recovering.

“The sector that lost the most [profissionais ocupados] was hotel and food, followed by domestic services. For every 5 domestics, 1 did not regain occupation. To make matters worse, most of them do not have a formal contract,” said the economist, coordinator of the Salariometer Project.

Impact of the economic crisis on work — Photo: g1

According to Zylberstajn, occupancy and income rates are a consequence of economic growth. And as the country’s GDP dropped 0.1% in the 2nd quarter and indicates a 0.14% drop in the 3rd quarter, expectations for the coming months are for a “small” increase in occupation in the country, mainly in areas whose remuneration is low.

Low-skilled professionals, according to the professor, were the most affected by this year’s crisis because they depended on vaccination to return to face-to-face work, unlike those who worked in the administrative area remotely, for example. The game should turn around in early 2022.

“As the economy has not gained momentum, the people who are hired will be the least qualified. And when we calculate the average income in the country, it will end up falling. This is not good for consumption and, obviously, it is not good for the economy as well,” he said.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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