Micro and small businesses generated 75% of Brazil’s formal jobs in January

RIO DE JANEIRO, BRAZIL – Micro and small businesses (MPE) led job creation in January, creating approximately 195,600 vacancies, which corresponds to about 75% of the total 260,353 formal jobs recorded in the month.

The numbers are in a report prepared by the Brazilian Micro and Small Business Support Service (Sebrae), based on January data from the General Record of Employed and Unemployed (Caged). The result is also almost double the number of employees generated by the segment in the same month last year.

This is the seventh consecutive month in which small businesses led job generation in the country. The report also shows that medium and large companies (MGE) registered a positive balance in job generation. There were 668,257 hirings against 626,653 dismissals, resulting in a positive balance of 41,604 jobs. This number is equivalent to 15.9% of the total jobs generated in Brazil.

“In the last six months, small businesses presented a total balance of 1.1 million new jobs against 385,500 new jobs created by medium and large businesses. Last January, the sectors that contributed the most to the positive balances were services, transformation industry and construction. These results are valid both for MSE and MGE,” informed Sebrae.

The report also shows that the principal divergence occurred in the trade sector. While micro and small companies had a positive balance of 27,400 jobs, medium and large companies had a negative balance of 21,300 jobs.

Regions

In January, the Center-Western Region presented the highest balance – 17.26 new vacancies generated for every thousand employees, closing January with 55,795 jobs. The South Region comes next, with 14.24 new jobs per thousand employees and closing January with 55,795 jobs.

Next comes the Northeast, with 11.68 jobs per thousand employees, totaling 36,037 jobs. The North Region generated 6,656 jobs, a balance of 7.73 jobs per thousand employees and the Southeast had a balance of 7.09 jobs per thousand employees, with 67,957 jobs generated in the month.

In January this year, the five states that proportionally generated the most jobs were Mato Grosso, Goiás, Santa Catarina, Roraima and Rio Grande do Norte. All these states generated at least 17 new jobs for every thousand existing jobs.

The states that proportionally generated the fewest jobs were São Paulo, Minas Gerais, Amapá, Rondônia, Rio de Janeiro and Amazonas. With the exception of Amazonas, which presented a negative balance, the others generated fewer than seven new jobs for every thousand existing jobs.

Source: Agencia Brasil