Economy

Brazil registers the creation of 277.9 thousand formal jobs in June, and 1.3 million in the year

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​In June, 277,900 formal jobs were opened in Brazil, according to data released this Thursday (28) by the Ministry of Labor and Social Security.

The balance was the result of 1.898 million new hires and 1.621 million dismissals in the month, according to Caged (General Registry of Employed and Unemployed).

The opening of formal vacancies in the month shows a trend of heating up the job market in the year.

The Minister of Labor and Welfare, José Carlos Oliveira, reinforced the forecast of 1.5 million new vacancies in the year.

In the accumulated period from January to June, the balance in the Brazilian formal job market is positive, with 1.334 million new vacancies.

According to Oliveira, the second semester is generally marked by an increase in the creation of formal employment, mainly due to the commerce and services sectors.

“We can be optimistic and we will reach a very significant number by the end of 2022”, said the minister, when announcing the data.

In January, 155,500 new contracts were created and, in February, 336,600. As of March, the result was lower. There were 91,200 new jobs in March, followed by 199,000 in April, and 274,600 in May.

June, which opened 277.9 thousand jobs, followed the trend of reheating in the formal market. The result is the second best of the year.

This year, Caged is influenced by the gradual end of the effects of the emergency job maintenance program. Created during the pandemic, the measure was considered essential by experts to sustain the job market during the height of the Covid-19 crisis.

Now, the ministry assesses that the end of the program and the end of protection of employment relationships make the data more dependent on the performance of economic activity.

Former Minister of Labor and Pensions, Onyx Lorenzoni, said earlier this year that the ministry’s projection is to create 1.5 million to 2 million formal jobs in 2022 – which was seen by many analysts as unlikely.

Oliveira now talks about a result close to 1.5 million.

From January to June of last year, 1.478 million formal jobs had been opened.

According to the ministry, the comparison between the two periods is difficult, as it is between two atypical moments. Last year the country was recovering from the tumble in the economy because of the effects of the arrival of the pandemic in 2020.

Even so, the government highlights that the opening of 277,900 jobs in June is very close to the result of the same month last year (310,000).

The June balance (creation of 277,900 jobs) reflects the positive performance in all five major sectors of the Brazilian economy. The result was driven by the service sector, which opened 124,500 jobs in the month.

Next are commerce (47.1 thousand), industry (41.5 thousand new jobs), agriculture (34.4 thousand open positions) and, lastly, construction (30.2 thousand).

The average admission salary in the country remains below a year earlier. In June, the indicator stood at BRL 1,922.77—below the level of BRL 2,026.10 recorded in the same month of a year ago, after adjusting for inflation.

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