September Records Highest Monthly Formal Job Creation in Brazil Since 2013

RIO DE JANEIRO, BRAZIL – Improved by services and industry, job creation with a signed worker’s book in September reached its highest level for the month in six years and the sixth consecutive month of growth.

According to data released by the General Registry of Employees and Unemployed (CAGED), of the Secretariat of Labor of the Ministry of Economy, a net 157,213 formal jobs were created last month.

The indicator measures the difference between hirings and firings.

The last time job creation had exceeded this level was in September 2013, when hirings exceeded firings by 211,068. Job creation this year totaled 761,776 from January to September, six percent more than in the same period last year.

Sectors

In the industrial division, seven of the eight sectors surveyed created formal jobs in September. The service sector topped the list, opening 64,533 jobs, followed by the processing industry (42,179 jobs). In third place is trade in goods (26,918 jobs).

Employment increased in construction (18,331 jobs), agriculture (4,463 jobs), mineral extraction (745 jobs) and public administration (492 jobs).

The only sector to dismiss more than it hired were the industrial services of public utilities, a category that includes energy and sanitation, with the net loss of 448 positions.

Traditionally, the generation of employment is high in September, due to the industrial production for Christmas and the increase in trade and services for the holidays.

In agriculture, the start of the sugarcane harvest is the main cause of job creation, particularly in the Northeast.

Regions

All Brazilian regions created jobs with a signed worker’s booklet in September. The Northeast led the job openings, with 57,035 positions, followed by the Southeast (56,833 jobs) and the South (23,870 jobs). The Midwest created 10,073 jobs, and the North opened 9,352 formal jobs last month.

In the breakdown by states, all 27 Federation units generated jobs last month. The largest positive variations in the employment balance occurred in São Paulo (opening of 36,156 jobs), in Pernambuco (17,630), in Alagoas (16,529) and in Rio de Janeiro (13,957).

Through social media, President Jair Bolsonaro commented that this is the best result for the month in six years. “We are changing Brazil for the better,” he exulted.

“MORE JOBS: According to CAGED data, more than 157,000 new jobs were created in September, the best result for the month in six years. The Northeast was the region with the highest balance. In the accumulated of the year, more than 761 thousand new jobs. WE ARE CHANGING BRAZIL FOR THE BETTER!”

– Jair M. Bolsonaro (@jairbolsonaro) October 17th, 2019

Annual Social Information Report

The Ministry of Economy also released the figures for the Annual Social Information Report (RAIS) for 2018.

Last year it closed with 46.63 million employment contracts, 349,520 more than in 2017, corresponding to an increase of 0.8 percent in jobs with a signed worker’s booklet in the country.

In 2018, 371,392 jobs with a signed worker’s booklet were opened in the private sector, 1.02 percent more than in 2017. There was growth in four of the five regions in Brazil, with the Northeast leading the way, where job offers rose 1.21 percent.

The second-highest increase was recorded in the South (1.1 percent), followed by the North (0.96 percent) and the Southeast (0.67 percent). Only in the Midwest, there were job cuts, with a 0.52 percent drop.

Out of the federation’s 27 units, 19 closed with a positive performance in formal employment – mainly Maranhão, Mato Grosso, Amapá, Santa Catarina, and Amazonas.

The increase in employment was greater in the 40 to 49-year-old age group, with the opening of 258,000 jobs. In second place were employees over 50 years old (153,000 openings), followed by those between 30 and 39 years old (83,000 openings).

The gap between men and women decreased slightly, with female employment rising from 40 percent in 2017 to 40.1 percent in 2018.

In terms of education, the highest growth was recorded among workers with completed higher education (458,000 jobs), followed by those with secondary education (373,000) and incomplete higher education (69,000). In the other, lower, levels of education, there was a decrease in the number of jobs.

Source: Agência Brasil