In a decade, almost 10 thousand factories closed in Brazil

All industrial production in the country accumulated negative numbers, with about 10,000 industries closing their doors in the period.

Estimated reading time: 3 minutes

Last Thursday (21), the Brazilian Institute of Geography and Statistics (IBGE) released a portrait of the Brazilian industry, carried out in 10 years.

Among the sectors that are decreasing in the country is the automobile industry. Thus, almost 23,500 people stopped working in the production of vehicles from 2011 to 2020. In 2011, the sector represented 12% of the industry in Brazil. In 2020, it was 7.1%, which represents a drop of 4.9%.

Thus, all industrial production in the country accumulated negative numbers, with about 10 thousand industries closing their doors in the period.

Impact on the worker’s life

This situation affected the lives of many workers. Since, in a decade, one million jobs were closed, especially in sectors that generate many jobs, such as clothing and accessories, leather and footwear and the metallurgical industry. And those who were not laid off had a drop in average pay. Going from 3.5 salaries to 3.2 salaries.

Industries by country

In summary, the number of industries in the Northeast and South regions remained practically the same. In the North and Midwest, thanks to the agroindustry, they gained space. However, the Southeast, which still concentrates more than half of Brazil’s industries, lost ground.

Also according to the research, the pandemic had different impacts depending on the sector. In 2020, when it started, approximately three thousand factories closed their doors, but the balance of jobs in the sector was positive. Therefore, industries needed to strengthen production to meet new demands.

Furthermore, part of the industry’s adherence to government programs, such as the payroll tax exemption, which provided for a reduction in wages and working hours, contributed to maintaining jobs. The IBGE, responsible for the research, explained that the pandemic had varied impacts on different sectors.

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Image: Aleksandar Malivuk /

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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