Brazil Formal Job Suffers from a 7-Month Cycle of Boom and Bust

12/28/2017 - 10h45

Job creation hasn't been enough in the service sector to balance up dismissals in other economic sectors in November and the Brazilian economy broke a cycle of growth in job creation over the past seven months.

In November, the government passed the labour reform bill and Brazil had reported more firings than hirings with a loss of 12,300 jobs last month. Nevertheless, there is no evidence of correlation between the dismissals in November and the new labour reform bill been passed.

Brazilian economy tends to create more jobs in November, however, firings were reported in specific economic sectors this year. Job creation in November has fallen since 2013 in the industry and agriculture sectors whereas the service sector has balanced up job creation at the end of the year.

The retail sector, however, created 69,000 jobs in November, similar to the same period last year (60,000) - it was unlike 2014 with 105,000 jobs.

In the first eleven months of this year, formal jobs have a positive balance with 299,600 job positions.

Even though the year may finish with a negative balance, as December tends to have substantial job losses (dismissals from temporary jobs created at the end of the year), it is expected to be less intense compared to 2015 and 2016 when more than 1 million people lost their jobs.

Translated by PATRICIA MARIA ANTUNES

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