Brazil Generates 43,800 Formal Jobs in July

RIO DE JANEIRO, BRAZIL – For the fourth consecutive month, formal employment was generated in the country, according to data from the General Registry of Employees and Unemployed (CAGED) released August 23rd, by the Ministry of Economy. In July, 43,820 job openings with a signed employment booklet were recorded, an increase of 0.11 percent in relation to the June figure.

The indicator measures the difference between hirings and firings. The positive balance in July of this year was the result of 1,331,189 admissions against 1,287,369 dismissals. In July 2018, the result was better, with a positive balance of 47,319.

In the first seven months of the year, 461,411 jobs were created (9,600,447 admissions versus 9,139,036 dismissals). Compared to the same period in 2018, there was a 2.93 percent increase. The result from January to July this year is the best for the period since 2014 (632,224).

Among the eight economic sectors, seven of them hired more than they fired in July. The balance was positive for civil construction (18,721), services (8,948), transformation industry (5,391), trade (4,887), agriculture and cattle raising (4,645), mineral extraction (1,049) and industrial services of public utility (494). Only public administration reported a negative balance (315).

Regional results

According to the ministry, all regions in Brazil showed an increase in the formal labor market in July. The highest balance was in the Southeast, with 23,851 positions with a signed employment booklet, an increase of 0.12 percent. Then came the Midwest (9,940 positions, 0.30 percent); North (7,091 positions, 0.39 percent); Northeast (2,582 positions, 0.04 percent) and South (356 positions, 0.00 percent).

From the 27 federal labor regions, 20 completed July with a positive employment balance. Most positions were filled in São Paulo, where 20,204 jobs were generated; Minas Gerais, with 10,609 new positions, and Mato Grosso, with a positive balance of 4,169 positions.

Labor Reform

Of the total balance for July, 6,286 positions stemmed from the labor reform, the equivalent to 14.34 percent of the total. Most of these jobs were intermittent (when the employee is paid for working odd hours), with a balance of 5,546 jobs, mainly in occupations such as production line feeder, construction worker, and cleaning worker. In the part-time job category, there were 740 positions in occupations such as cleaning, office assistant, and cashier operator.

In July 2019, there were 18,984 dismissals by mutual agreement, involving 13,918 establishments, in a pool of 12,592 companies.