Brazil generated 278,639 formal jobs in August, says Ministry of Labor and Social Safety

According to the ministry, last month there were 2.051 million new hires and 1.773 million layoffs. Result is lower than that recorded in August 2021.

The Ministry of Labor and Welfare reported this Thursday (29) that Brazil generated 278,639 formal jobs in August this year.

The data is from the General Register of Employed and Unemployed (Caged) and represents the net balance (hirings minus layoffs) of the generation of formal jobs.

Altogether, according to the federal government, were recorded in August:

• 2,051,800 new hires;
• 1,773,161 layoffs.

The net result represents a worsening in relation to August last year, when 388,267 formal jobs were created (revised number).

In August 2020, amid the isolation of the first wave of Covid-19, 238,125 formal jobs were opened.

Comparing the numbers with years prior to 2020, according to analysts, is no longer adequate because the government has changed the methodology.

Caged X Pnad

Data from the General Register of Employed and Unemployed (Caged) consider only workers with a formal contract, that is, they do not include informal workers.

As a result, they are not comparable with the unemployment figures, released by the Brazilian Institute of Geography and Statistics (IBGE), collected through the National Household Sample Survey (Pnad).

The Caged numbers are collected from companies and cover the private sector with a formal contract, while the Pnad data are obtained through household surveys, and also cover the informal sector of the economy.

Sector and regional result

Also according to data from Caged, all sectors of the economy and the 27 federation units had net job creation in August.

Among the sectors:

• services: 141,113 vacancies;
• industry: 52,760;
• trade: 41,886;
• construction: 35,156;
• agriculture, livestock and fisheries: 7,724.

Among the regions of the country:

• Southeast: 137,759 vacancies;
• Northeast: 66,009;
• South: 35,032;
• Midwest: 21,515;
• North: 18,171

Among the states, the highlight was São Paulo, which generated 74,973 jobs in the month.

Average admission salary

The government also reported that the average admission salary was R$ 1,949.84 in August this year, which represents an increase in relation to July, when it was R$ 1,920.57.

According to data from Caged, the admission salary started to increase, month after month, from the second half of this year onwards. In the first, it wavered.

Year to date

According to the Ministry of Labor and Social Security, 1.85 million formal job openings were created in the country between January and August.

The number represents a decline in comparison with the same period in 2021, when 2.17 million vacancies were created.

In 2020, amid the pandemic, the country closed 1.08 million vacancies. The data are with fit.

Source: G1