Brazil Opens Net 313,564 Formal Jobs in September, Third Straight Month of Growth

RIO DE JANEIRO, BRAZIL – Special Secretary of Social Security and Labor Bruno Bianco said on Thursday, October 29th, that there is a marked upswing in the Brazilian labor market, which recorded the third consecutive month of formal employment growth in September.

There were 313,564 net job openings with a signed employment booklet in September, according to data from the General Registry of Employees and Unemployed (CAGED), released on Thursday by the Ministry of Economy.

“We had the best September since CAGED official records began. We are striving to provide more good news on the labor market. We will continue to revoke decrees and normative acts that only complicate and result in legal insecurity,” repeated Bianco.

The Special Secretary assessed that the net loss of formal jobs at the peak of the pandemic was due more to the reduction in hiring than to the increase in layoffs compared to preceding periods. “Now it is the resumption of hiring that is pushing up employment,” he said.

Bianco reiterated that the Ministry is not making projections for the opening of vacancies in the CAGED for October and for the year 2020, but stressed that the portfolio expects a positive outlook for the coming months.

13th salary

The Special Secretary reiterated that the government’s legal area is still assessing the future calculation of the 13th salary for those who had their salaries reduced during the Covid-19 pandemic. “Soon we will have a specific answer on this. There is no rush on this, only the usual end-of-year rush”, he answered.

The Special Secretariat of Social Security and Labor submitted a consultation to the National Treasury General Counsel (PGFN), in charge of the Ministry of Economy’s legal opinions, on how the 13th salary should be paid to workers who had their workdays and salaries reduced during the state of calamity caused by the Covid-19 pandemic.

The economic team’s understanding is that the 13th salary should be based on the full salary, excluding any reduction. But since the law that created the so-called Christmas bonus provides that the basis is the December salary, there is concern that companies with agreements in force in the last month of the year will ultimately pay a lower amount, or in extreme cases, that employers will make new agreements solely with the aim of reducing the end-of-year bonus.

Source: Estadão Conteúdo