RIO DE JANEIRO, BRAZIL – According to the Ministry of Economy, in April there were 1,381,767 new hires and 1,260,832 dismissals in the formal labor market, which resulted in the creation of a net 120,935 jobs.
The highlight was the services sector, which created 57,610 jobs, having hired 614,873 people during the month, and fired 557,263.
“[The result] seems little compared to what we created before, but we must consider that [April] felt the impact of the second wave of Covid-19 the most. In the first wave, last year, we lost over 900,000 jobs. Now we have created 120,000 jobs. Brazil is proving resilient. The programs are working. And, above all, mass vaccination is coming in. And this is what we have to rely on for a safe return to work,” said Economy Minister Paulo Guedes.
The data are part of the General Registry of Employed and Unemployed (CAGED) monthly statistics, which the Ministry released on May 26. With the result, the stock of formal jobs in the country (total number of active labor contracts) reached 40,320,857 – representing a positive variation of 0.30% over the 40,199,922 registered in March.
From January to April, there have been 6,406,478 new hires and 5,448,589 dismissals, representing a positive balance of 957,889 jobs.
Economic activities
In addition to the services sector, other four economic activity groups (overall industry; construction; trade and agricultureç livestock, forestry, fishing, and aquaculture) also posted positive balances.
The average monthly salary for new hires in April was R$1,855.52 (US$350) – R$46.02 (2.54%) higher than the average recorded in March, which was R$1,802.65.
All of the country’s regions posted positive job creation balances. Of the 27 states, 23 recorded more hires than dismissals. The positive highlights were São Paulo, with 30,174 more formal jobs; Minas Gerais (13,942); and Santa Catarina (11,127). The states with the lowest results were Alagoas (-3,208); Sergipe (-92) and Rio Grande do Norte (-61).
According to Guedes, results should be celebrated because in April 2020, the Brazilian economy was heavily impacted by the Covid-19 pandemic. “After that [first wave], we began a recovery that continues, totaling 2.2 million jobs created since July. Of course, this pace, in April [this year], was slower, because that was when deaths peaked in the second wave and social distancing, prudence, led to a retraction,” Guedes commented, advocating vaccination of the population as a means of ensuring “a safe return to work.”
The complete statistics of the New CAGED are available on the Ministry of Economy’s website. The data can also be accessed on the New CAGED information panel.