Losses in Formally Contracted Jobs Slow in July

08/26/2016 - 09h15

Job losses in the Brazilian labor market slowed somewhat last month, but even so, cumulative job losses from January through July registered the worst result since the survey started collecting data in 2002.

In July, Brazil lost 94,7 thousand formal job positions, the 16th consecutive month where firings exceeded new hirings.

	Mário Angelo/Sigmapress/Folhapress
	In the second semester of 2015, a total of 1,2 million jobs were lost.

Even though job firings persist, the total number of job losses was less than in July of 2015, when the balance of firings over hirings was a loss of 149 thousand. In July of this year, the net loss was 89 thousand.

For the Labor Minister, this result shows a "gradual recuperation of the economy". Ronaldo Nogueira, Minister of the area, says that in the second semester new hirings will exceed firings. In the second semester of 2015, a total of 1,2 million jobs were lost.

Even with the improvement in the numbers last month, the total accumulated job losses from January through July are the worst result in the historical governmental record: 623,5 thousand labor positions lost.

In the last 12 months, Brazil has accumulated a loss of 1,7 million formal labor positions.

A worsening of conditions in the labor market began at the beginning of last year and reflects continuing problems in the Brazilian economy, which shrank by 3,8% in 2015 and continues at a similar pace this year (analysts forecast a retraction of 3,2% of GDP for 2016).

Translated by LLOYD HARDER
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