Brazil Has Created 700,000 New Jobs in 2014. One Million Are Expected Till End of Year

Brazilian laborers In August, 101,425 new jobs have been officially created in Brazil, as a result of the month’s 1,748,818 engagements and 1,647,393 redundancies – 0.25 percent up from July. As for the number of jobs generated during the year, the figure stands at 751,456 (up 1.85 percent). Over the last 12 months, 698,475 spaces were made available (an increase of 1.72%). 

The figures were published by the Ministry of Labor. According to Minister Manoel Dias, August’s performance is the best of the last three months, and had been expected by the government, which maintains its estimated 1 million new jobs to be created by the end of 2014. He pointed out that the country has managed to follow a model that holds the number of openings steady, with real salary raises, keeping the economy invigorated.

Dias further argued that, if there is a reduction in the pace of engagements compared to the previous years, it is so because the country has faced a full employment scenario. “There was formerly more room for growth. Now, with full employment, the result, albeit a lower one, is positive,” he mentioned.

“One does not generate 101 thousand jobs by chance. It’s not about personal research, like other studies that have been presented, which have as their basis the subjective opinions and forecasts of people. What we’re showing here is real data about the number of jobs created. Data provided by the companies themselves,” the minister declared.

The sectors with the most remarkable performances were services, with 71.292 new spaces; commerce, 40.619; and construction, 2,239. As for the manufacturing industry, a reduction of 4,111 posts was reported.

President Dilma Rousseff, who currently tries to be re-elected, said the these positive figures are proof of the country’s resistance to the international crisis. “Employment in Brazil is on the rise precisely at the moment when a report was published by the UN about the G-20 economies, which attests to the existence of a worldwide employment crisis,” Rousseff pointed out.

ILO

A report entitled “Decent Work and Youth in Latin America: Policies for Action”, published earlier this year by the International Labor Organization (ILO), shows a decrease in the number of informal jobs among young people in Brazil – from 52.6% in 2007 to 41.6% in 2011. The document shows that socioeconomic factors and public policies account for the rise in formal employment in Brazil’s labor market.

The survey further indicates that the probability of unemployment among young people in the country has been kept steady – around 20%, whereas the general rate is 7%.

According to the ILO, nationwide economic policies have stimulated the demand for more workers in formal positions, whereas demographic changes and young people’s lowered school dropout rates have contributed to reduce the supply of young workers to the labor market. Law changes have also promoted further formalization.

The ILO states that, as regards youth employment, specially designed measures should be taken in order to meet the needs of this section of the population. ILO’s report emphasizes that there is no single recipe, and that the situation is different in each country, but examples of innovative experiences can be adapted.

Some of these experiences point towards improvements and expansions in training programs as a means to facilitate the transition between school and work life. Their purpose is to make young people better qualified when looking for a job, so they can meet the needs of the market. Furthermore, programs aimed at helping young people through bureaucratic processes should also be supported.

“Over the last years, we’ve gained a lot of experience on how to face the obstacles young people stumble on when they enter the labor market. The challenge lies in putting it into practice, broaden its application, both geographically and temporally, and enhance its planning so that it becomes efficient,” said ILO Regional Coordinator for Youth Employment Guillermo Dema.

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