Number of Cities with High Standard of Living Reduced by Half due to Unemployment

06/29/2018 - 11h57

The economic crisis has affected general development of Brazilian cities, but the most extensive damage was caused to the job market in more than 5,000 Brazilian local governments.

Data from Firjan (Federation of Industries of the State of Rio de Janeiro) shows that during the crisis, the number of developed cities in terms of employment and income has fallen by more than half. In 2013, there were 1,761 cities with high or moderate development; in 2016, there were 825.

To assess the level of development related to employment and income, Firjan monitors the creation of formal employment and income, wage bill and income inequality in formal work.

Between 2013 and 2015, the employment and income indicator for all Brazilian cities fell by more than 20%. Even with a small recovery in 2016, the index places cities at a regular level of development in this regard.

What is troubling is that, if the best growth average of Brazil's historical data is maintained -1.5%, between 2009 and 2012 -, the indicator will only reach 2013's level in 2027.

The employment and income indicator forms the general development index of Firjan, jointly with the basic health and education indicator. All indexes range from 0 to 1; the closer to one, the more developed the city.

Although recession has affected advances in basic health and education, such indicators still show a moderate level of development (approximately 0.76).

Translated by ANA BEATRIZ DEMARIA

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