The creation of 229,757 formal economy, on-the-books, jobs in August was the best result since 1998. According to minister of Labor, Ricardo Berzoini, the ministry’s job registry (Cadastro Geral de Empregados e Desempregados) (Caged) showed that the increase was 0.94%, compared to July.
Berzoini explained that more jobs were created because of easier credit resulting in more activity in basic sanitation and housing starts.
During the period, the industrial sector added 72,000 jobs and services added 74,000. The farm sector, which had strong job performance in the first half, was basically stable.
Berzoini declared that the Caged numbers were a surprise. “Many people in the government were concerned with jobless growth. What happened was the opposite.”
“Employment has been rising faster than the GDP,” he explained, pointing out that for the year cumulative job growth is now at 466,000.
The minister adds that more jobs means more revenue for the social security system (INSS) and the worker compulsory savings fund (FGTS).
As the latter finances public works in housing, basic sanitation and urban infrastructure that translates into more benefits for the population. Finally, says the Minister, a stronger domestic economy means less dependence on exports.
Reporter:Lilian de Macedo
Translator: Allen Bennett