The number may reach 1.5 million in 2023; Analysts are revising the bullish outlook
247 – President Lula’s government is seeing promising results in terms of formal job creation in Brazil. In just four months, 705,000 official jobs have been created. This surprising performance led analysts to revise their forecasts for the labor market in the country, which indicates a potential number of up to 1.5 million formal jobs created by the end of 2023, according to points. Reporting by journalist Marcelo OsakabePosted in Valor Economico.
This significant improvement in the labor market is in line with the above projected growth of the Brazilian economy since the beginning of the year. The recovery was driven by job creation in the formal sector, particularly those with a formal contract. Data from the new General Register of Employees and Unemployed (Caged) reveals that in the past 12 months, up to April, 1.9 million formal jobs were created in the private sector.
In addition, the average real admission salary was R$2,015.58, and the labor market formalization rate was 61.1% in the quarter ending in April, according to the National Continuing Household Sample Survey (PNAD). This level of formalization has not been seen since 2016, except in 2020, when there was a temporary increase due to pandemic layoffs.
Faced with these positive indicators, analysts are revising their forecasts for the labor market. Projections indicate that by the end of 2023, about 1.5 million official jobs will be created, which will contribute to lowering the average unemployment rate to 8.0% this year. However, despite these developments, there are still structural challenges that must be faced in order to further formalize work in Brazil and enhance worker productivity.
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