After rising in June, formal job creation fell in July. According to data released by the General Registry of Employed and Unemployed Workers (Caged), from the Ministry of Labor and Employment, 188,021 formal jobs were created last month. The indicator measures the difference between hiring and layoffs.
Job creation increased by 32.3% compared to the same month last year. In July 2023, 142,107 jobs had been created, according to adjusted data, which considers declarations submitted late by employers. Compared to the month of July, the volume was the highest since 2022.
In the first seven months of the year, 1,492,214 job openings were created. This result is 27.2% higher than in the same period last year. The comparison considers the data with adjustments, when the Ministry of Labor records declarations submitted late by employers and rectifies the data from previous months.
The accumulated result is the highest since 2021, when 1,787,662 jobs were created from January to July. The change in Caged’s methodology does not make it possible to compare with years prior to 2020.
Despite the acceleration in July, Labor Minister Luiz Marinho expressed concern about a possible increase in interest rates in the second half of the year. A traditional critic of the Central Bank’s monetary policy, he said that a possible increase in the Selic rate (the economy’s basic interest rate) could jeopardize investments and harm the labor market and the public budget.
“That [um possível aumento de juros] “It is an economic aberration. I hope the Central Bank talks about controlling inflation through supply, not by restricting demand,” the minister said in a press conference.
Sectors
In terms of activity, all five sectors surveyed created formal jobs in July. The statistics were led by services, with the creation of 79,167 jobs, followed by industry (manufacturing, extraction and other types), with 49,471 more jobs. In third place is commerce, with the creation of 33,003 jobs.
The employment level increased during the civil constriction, with the creation of 19,694 jobs. Even with the pressure of the end of the harvest of several products, agriculture created 6,688 jobs last month.
Highlights
In services, job creation was driven by the information, communication and financial, real estate, professional and administrative activities segment, with the opening of 45,352 formal positions. The public administration, defense and social security, education, human health and social services category opened 11,102 vacancies.
In industry, the positive highlight was the manufacturing industry, which hired 45,803 more workers than it laid off. In second place was the water, sewage, waste management and decontamination segment, which created 1,986 jobs.
Caged statistics presented since 2020 do not detail hiring and firing by trade segment. The previous historical series separated data from wholesale and retail trade.
Regions
All five Brazilian regions created formal jobs in July. The Southeast led the way in job creation, with 82,549 more jobs, followed by the Northeast, with 39,341 jobs. Next comes the South, with 33,025 jobs. The Central-West created 15,347 jobs, and the North created 13,500 formal jobs last month.
In the breakdown by Federation Units, only Espírito Santo recorded a negative balance, with the elimination of 1,029 jobs. The highlights in job creation were São Paulo (+61,847 jobs), Paraná (+14,185) and Santa Catarina (+12,150). The lowest numbers of job openings were recorded in Amapá (+472), Tocantins (+205) and Roraima (+137).
Rio Grande do Sul
Regarding Rio Grande do Sul, the Minister of Labor and Employment highlighted that the positive data in July reflect the federal government’s investments in the reconstruction of the state, affected by major floods in April and May.
According to Caged figures, 6,690 jobs were opened in Rio Grande do Sul in July. This was the first positive balance since April. “I thought this [a geração de empregos no território gaúcho] was going to happen at the turn of this year to next year. It is a very positive surprise from this process”, declared Luiz Marinho.
