Brazil’s informal sector should drive employment recovery

RIO DE JANEIRO, BRAZIL – Employment recovery with the pandemic under control in Brazil should start in the informal sector, particularly the unregistered self-employed. But the self-employed category can be a driver for the market even among formal workers.

Together, the data show that companies have not been significantly creating jobs, and workers have had to make do as they can.

The findings, presented by the Brazilian Institute of Economics of the Getúlio Vargas Foundation (FGV Ibre), have profound implications for the future, not only in economic terms, but also regarding the need for income protection and professional qualification.

A monthly series of IBGE’s (Brazilian Institute of Geography and Statistics) Continuous National Household Sample Survey, by economists Fernando Veloso, Silvia Matos and Paulo Peruchetti shows that formal employment stood 7.4% below the pre-pandemic period in January this year, while the level of informal employment was 9.6% lower.

However, informal workers were much more affected in the Covid-19 crisis than formal workers, something that is particular to this recession.

Source: Valor Investe

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