Under Bolsonaro, Underemployment, Low Productivity and Leaks Hamper Brazil's Growth

Brazil's low-income job market is expected to maintain the trend of increasing informality over the past decade

São Paulo

Brazil's low-income job market is expected to maintain the trend of increasing informality over the past decade.

According to experts, this will be one of the main obstacles to the acceleration of growth and to the rescue of millions of Brazilians who have fallen into abject poverty during the pandemic.

In the past decade, Brazil had the worst performance in the last 120 years, pushing the last generation into informality - an area of ​​the economy that pays, produces, and grows less, jeopardizing its average evolution.

In the pandemic, even informal work was decimated by the paralysis of the service sector, responsible for 70% of the GDP (Gross Domestic Product) and jobs, half of them out of formality.

The main occupations of these segments (workers and domestic workers in the private sector without a formal contract, own account without CNPJ, among others) lost up to 20% of vacancies.

The least educated, mostly informal and who did not complete high school, saw up to 17% of their income disappeared, according to Ibre-FGV (Brazilian Institute of Economics of the Getulio Vargas Foundation) based on IBGE research (Pnad and Pnad -Covid-19).

Translated by Kiratiana Freelon

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