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Rise in Unemployment Sharpens in Trade and Services Sector

07/24/2015 - 09h27

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BRUNO VILLAS BÔAS
FROM RIO

With layoffs at a record high and an increased demand for labor, the unemployment rate in the six main metropolitan regions of Brazil rose to 6.9% in June, the sixth consecutive increase.

It is the highest rate ever recorded since July 2010 (6.9%), according to the Brazilian Institute for Geography and Statistics (IBGE).

The rise in unemployment is due to more intense layoffs. The employed population shrank by 1.3% compared to June 2014, to 22.7 million people.

This means that 298,000 people lost their jobs within one year, the worst result since this series began being recorded, in 2002.

In addition to the intense layoffs which were largely concentrated in the industry and construction sectors, have now reached the trade and services sectors since last month.

The cuts were higher in the sector called "other services", which includes accommodation, food and recreation. 114 000 people were laid off, down by 2.7%.

Trade also had a poor performance, with 95,000 layoffs between June 2014 and 2015. The population employed in the sector fell by 2.2% in this comparison.

"Trade is reducing staff, affected by the drop in revenue and increased costs, such as energy. With the bad scenario, the trade is readjusting," said Vitor France, economic adviser at FecomercioSP.

With the cuts, the number of workers with a formal contract in the six regions fell by 2% compared to June 2014.

In addition to layoffs, the job market is under pressure as more Brazilians begin to seek employment to improve the income of their families, eroded by inflation and interest rates.

Translated by CRISTIANE COSTA LIMA

Read the article in the original language

Ernesto Rodrigues - 21.ago.2014/Folhapress
The rise in unemployment is due to more intense layoffs
The rise in unemployment is due to more intense layoffs

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