Job Creation in Brazil Down Sharply in July: Daily

By Chesney Hearst, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – Data released by the Brazilian Labor Department on Thursday, August 21st, showed that job creation during the month of July decreased 71.5 percent compared to the amount of jobs created in July 2013. Those numbers marked the sharpest monthly decrease recorded since July 1999 and were due mostly to layoffs within the manufacturing sector.

To gather the data, the General Register of Employed and Unemployed (CAGED) studied eight economic sectors in the states of Rio Janiero, São Paulo, Roraima, Bahia, Sergipe, Espírito Santo, Santa Catarina, Pernambuco, Minas Gerais, and the Distrito Federal (Federal District).

Rio de Janeiro state had the highest decrease with 150,944 job openings and 157,993 layoffs. “In the month of July there was also a decrease in employment generation due to the [World Cup],” Minister of Labor, Manoel Dias told O Globo. “A huge number of workers were hired [in Rio]. When the World Cup finished, the temporary workers were dismissed.”

Within the areas studied, many sectors including service, agriculture, construction and public administration, saw job creation increase during the month. The decline mostly came from within the transportation equipment, metallurgical, electrical and communication material, and rubber industries.

The manufacturing sector overall saw 15,392 layoffs recorded during the month. The sector accounts for more than ten percent of the country’s labor force and is responsible for approximately one-fifth of the country’s GDP.

Mr. Dias, while acknowledging the recent decline, was hopeful about future job creation during the months of August and September. He cited recent consumer credit policies, foreign investments and new export opportunities to Russia, as conditions that will strengthen growth within labor market.

“We have several indicators that [employment] will not continue to decline,” said Dias, adding; “I think we’ve hit rock bottom. Now, we’ll continue to recover, in terms of job creation.”

Read more (in Portuguese).

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