Aid Brazil exceeds formal employment in almost half of the states

In almost half of the Brazilian states, the number of families covered by Auxílio Brasil exceeds the number of formal employment contracts registered by Caged (General Registry of Employed and Unemployed).

In February, 12 of the 27 federative units (counting the Federal District) had more families receiving assistance than the stock of formal vacancies, based on data from Caged. That month, there were 41.2 million Brazilians with a formal contract, according to the register.

The comparison considers the number of families benefiting with at least R$ 400 each month and the stock of jobs, which is the number of formal employment contracts, in the same period, including the public sector. The difference in relation to Auxílio Brasil is visible in the states of the Northeast and North.

A recent report on the Poder 360 website already showed this comparison between beneficiaries and registered professionals in February. ​When looking at the historical series, it is also possible to see that this scenario has worsened compared to the end of last year, when there were nine states in this situation.

In Maranhão, for example, 962.3 thousand families benefited last November, compared to a stock of 526.2 thousand jobs; in Pará, 957.2 thousand, against 526.2 thousand formal employees; in Alagoas, 412.8 thousand homes received the aid, compared to 375.3 thousand formal vacancies in stock at Caged.

In February, according to the most recent data, the number of beneficiaries in Maranhão had already risen 15%, to 1.11 million families, while the stock of formal vacancies remained practically stagnant compared to November, totaling 529,200 vacancies.

A similar movement in the period, of increase in families in Auxílio Brasil, occurred in Pará (20%) and Alagoas (17%). Employment, on the other hand, could not keep up with those benefiting from the program at the same pace: in Pará, there was a 0.6% drop in stock; in Alagoas, 0.1%.

Caged only considers jobs with a formal contract, while a good part of the recovery of the labor market since the pandemic has been due to informal work.

These movements, according to analysts, may have occurred both because of an increase in the number of people seeking Auxílio Brasil and because of greater knowledge about the new income transfer program.

In February, Caged pointed out that the country registered the net creation of 328,500 formal jobs, which means a retraction of 17% compared to the same month last year. In addition, workers’ starting wages have fallen again.

The average remuneration for those who were hired in February was R$ 1,878.66, 3% less than in January and 2.4% less than a year earlier (already considering values ​​adjusted for inflation), according to data from the Ministry of work.

“This proves that, even with an improvement in employment, families will continue to depend on transfer programs in a scenario where family income is falling”, says Elvis Cesar Bonassa, director of Kairós Desenvolvimento Social.

He recalls that the income per person in that household is the main criterion for entering and staying in programs such as Bolsa Família and Auxílio Brasil. “Even if the head of the family has a job, his salary may not be enough to maintain the house and he ends up having to enter the program. Income from work is not enough to lift families out of poverty, employment is no longer a guarantee of safety.”

Last year, the per capita household income (per person) was R$ 1,367, a level 0.94% lower than that recorded in 2020, according to the IBGE (Brazilian Institute of Geography and Statistics). This, even without considering inflation, of 10.06% in 2021 and which continues to squeeze the pocket of Brazilians this year.

The manicurist Luana Santana, 29, is an example of this. With no formal work ties, she relies on the program to help support her two children, while trying to recover the clientele lost during the pandemic. “It’s a help that we can’t give up, especially with prices at the supermarket going up so much.”

In states where the stock of formal work is smaller than the number of families in Auxílio Brasil, the per capita household income is below the national average. This is the case of Maranhão (R$635), Pará (R$847), Acre (R$888) and Alagoas (R$777), for example.

Source: IBGE, with Agência Brasil

REGIONAL DIFFERENCES REMAIN A CHALLENGE FOR BRAZIL AID

Auxílio Brasil replaced Bolsa Família last November, after 18 years of existence of the original program. This was the way that the government of President Jair Bolsonaro (PL) found to create a flag in the social area that would replace one of the brands of PT governments.

The search for popularity among the most vulnerable population is also important for the president, who is expected to seek re-election in the October election, when he will be able to face former president Lula (PT).

“The program is a continuation of Bolsa Família, which was created with the objective of alleviating poverty. When looking at the long-term effects, one can see how important benefits like this are for the whole family, even if the results vary from region to region”, says economist Paulo Tafner, from IMDS (Institute of Mobility and Social Development).

He led a recent study, anticipated by Folha, which shows that only 20% of Bolsa Família dependents still needed the program after 14 years.

Tafner emphasizes that the success of Bolsa Família and Auxílio Brasil, although not to be measured by the children and young people who managed to leave the program, is also reflected in this aspect, since many vulnerable families were able to make their children accumulate human capital.

One of the main criticisms leveled at the Bolsa Família replacement, however, is that the minimum benefit of R$ 400 is guaranteed until the end of this year. Public policy experts fear that the measure will only follow electoral interests and that families will have a new sharp drop in income from next year.

“Brazil needs to reduce regional differences, with more job opportunities and an increase in average income, so that the chances that a worker has to stop depending on the program increase”, says economist Bruno Ottoni, from IDados.

The economist adds that one of the best ways to reduce this scenario, although it is a medium to long-term measure, is investment in education and training for the job market.

“It is not easy to solve this problem and we tend to think of ready-made answers. In the case of Ceará, schooling has improved a lot and what they have done in terms of earnings is impressive, but the job market was weak before, with low average income and high unemployment, and it remains pretty much the same.”

Families in extreme poverty, with a monthly per capita income of up to R$105, and in poverty, with a monthly income of up to R$210 per person, can apply for assistance, according to the Ministry of Citizenship. There are about 18 million families benefited across the country.

The consultation of the amount that the family will receive can be done through the Caixa Tem application, on the Caixa Econômica Federal telephone number 111 and through the Auxílio Brasil application.

It is also possible to check the values ​​through the Meu CadÚnico application and at the Cidadania relationship center, by calling 121 or 0800-7072003.