Micro and Small Businesses Generated Over 73,000 Jobs in October

RIO DE JANEIRO, BRAZIL – In October, the country’s micro and small companies created more than 73,000 new jobs, the best result for the month in the past five years, according to a survey conducted by the Brazilian Micro and Small Business Support Service (SEBRAE), based on the General Registry of Employees and Unemployed (CAGED) of the Ministry of Economy.

According to SEBRAE, small businesses were the only segment to generate new jobs with a signed worker’s registry book in October. Medium and large-sized corporations (MGE), in contrast, recorded a net negative balance of 2,119 jobs. In public employment, the balance was also negative, with the net dismissal of 427 workers.

Biosolvit, a startup in the applied biotechnology area specializing in environmental rehabilitation, was one small business that opened new jobs in October. In an interview with Agência Brasil, the company’s founder, Guilhermo Pinheiro de Queiroz, said that last month his company hired three more people.

For next year, he expects to hire another 50 employees. However, he says the number could be even higher if the Brazilian economic scenario were better. “The economic environment is unfavorable for everybody, including startups. If we were in a favorable environment, startups would be hiring much more. The point is that startups, by definition, are already growing more than normal. This is a premise of an innovative model”, he said.

From January to October, 752,400 vacancies were opened throughout the country, which corresponds to ten times more than the balance of jobs generated by medium and large-sized companies and 10.5 percent higher than the balance recorded in the same period last year. More jobs are expected to be generated this year in micro and small companies than in 2018.

“Our surveys show that small-scale entrepreneurs are regaining confidence and optimism about the economy and this is reflected in hiring. The closeness to Christmas also begins to heat up the emergence of vacancies, particularly in commerce and services,” said Carlos Melles, president of SEBRAE.

Trade

Last month, small-scale entrepreneurs in the retail sector were the leaders in job creation, accounting for the creation of 32,500 new jobs, followed by service sector entrepreneurs, with the creation of 22,800 jobs.

The businesses related to civil construction and processing industry generated, respectively, 10,900 and 10,500 employees. In the year to date, the service sector was responsible for the opening of 408,800 vacancies, followed by the construction sector, which created 121,700 vacancies in the year.

Source: Agência Brasil