Total or Partial Loss of Regular Income Has Affected 40 Percent of Brazilians
RIO DE JANEIRO, BRAZIL – A survey by the National Confederation of Industry (CNI) shows that the loss of purchasing power has affected four out of ten Brazilians since the outbreak of the pandemic.
Of the total number of respondents, 23 percent have lost all their income and 17 percent have seen a reduction in monthly earnings, reaching 40 percent.
Almost half of all workers (48 percent) are very afraid of losing their jobs. Adding the percentage of those who are moderately (19 percent) or slightly (10 percent) afraid, the rate comes to 77 percent of people in the labor market who fear losing their jobs. In general, nine out of ten respondents consider the impacts of the coronavirus pandemic on the Brazilian economy to be significant.
The survey also shows that the impact on income and the fear of unemployment have led 77 percent of consumers to reduce their consumption of at least one of the 15 products covered by the survey during the social isolation period. In other words, out of every four Brazilians, three have cut their spending. Only 23 percent of respondents did not cut their purchases at all, compared to the pre-pandemic period.
Asked how they intend to behave in the future, most Brazilians plan to preserve the post-pandemic period level of consumption adopted during isolation, with percentages ranging from 50 to 72 percent of respondents, depending on the product. This trend, according to CNI, may suggest that people are not willing to return to the same level of purchases they had before.
Only one percent of respondents said they would increase consumption of all 15 items covered by the survey after the end of social isolation. Consumption of up to five products is expected to increase for 46 percent of respondents; consumption of six to ten products will increase for eight percent; and consumption of 11 to 14 products will increase for two percent of respondents. According to 44 percent of respondents, there will be no increase in consumption of any of the items.
Social isolation
The data shows that the Brazilian population is still favorable to social isolation (86 percent), despite potential economic losses, and the majority (93 percent) has changed their routine during the isolation period to different degrees.
In the post-pandemic scenario, three out of ten Brazilians mention returning to the same routine they had before. With respect to the return to work after the end of social isolation, 43 percent of formal and casual workers said they feel safe, while 39 percent say they are more or less safe while 18 percent feel unsafe.
“The attention of governments, businesses and society should be primarily focused on preserving lives. However, it is crucial that we also concern ourselves with the survival of businesses and the maintenance of jobs. A consistent strategy must be established so that, at the right time, a safe and gradual restart of business activities can be promoted”, said the president of CNI, Robson Braga de Andrade.
The majority of respondents (96 percent) consider it important that companies implement safety measures, such as the distribution of masks and the adoption of a minimum distance between employees. For 82 percent of employees, these measures will be effective in protecting them.
Debts
A fact pointed out by the survey and regarded as troubling by the CNI is indebtedness, which affects over half of the population (53 percent). The percentage is the sum of the 38 percent who were already in debt before the pandemic and the 15 percent who have incurred debts over the past 40 days, a period that is coincident with the start of social isolation.
Among those in debt, 40 percent say they are now in arrears on some of these debts. The majority of those in debt (57 percent) have begun to default on their installments in the past 40 days, a period that is coincident with social isolation.
The survey, conducted by the FSB Research Institute between May 2nd and 4th, included 2,005 respondents from all states of the country, at least 16 years old, and has an error margin of two percentage points plus or minus.
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