CNC: First job represents more than 20% of formal jobs generated in the pandemic

The first job represented 22% of the total number of formal jobs created from July 2020 to May 2022, according to a survey by the National Confederation of Trade in Goods, Services and Tourism (CNC).

The survey was commissioned by CNN and carried out based on data from the General Register of Employed and Unemployed (Caged). In this period, the first job openings totaled 1.1 million.

Data from Caged show that, after three months of sharp decline due to Covid-19, July 2020 marks the return of the surplus in the creation of formal jobs in the country. From that month to May 2022, 5 million jobs were opened, which represented a 14% increase in the workforce.

“The process of reopening the economy began when the quarantine was relaxed and naturally companies resumed hiring. In 2020, inclusive, the result for the year as a whole is positive, although in April, May and June they were quite negative, especially in April. So this resumption of jobs coincides with the process of reopening the economy”, says Fabio Bentes, economist responsible for the study.

For Bentes, the volume of first job vacancies reflects the search of companies to replace those lost in the pandemic.

“This data needs to be inserted in the context of high inflation, companies in the process of economic recovery, so more opportunities have been given to younger workers, more than usual. This does not necessarily mean that they are exchanging more expensive professionals for cheaper ones, but in the face of a high inflationary process, it is natural for them to look for lower labor costs”, says the economist.

Bentes considers that it is not possible to say whether this trend will last for the next few months, as companies tend to prefer more qualified and experienced workers.

From the point of view of the major economic sectors, six out of ten first job vacancies were opened in commerce, manufacturing industry and administrative activities and complementary services.

The CNC survey also points out that, in the last ten years, the unemployment rate among young people aged between 18 and 24 has been more than double the labor market average. In the first quarter of 2022, for example, the unemployment rate among young people was 22.8% against 11.1% of the general average.

According to Bentes, higher unemployment among young people is common. “This happens for a very simple reason, younger workers have historically had more difficulty entering the job market, especially in today’s challenging market, with an unemployment rate close to 10%,” he said.

Employment situation in the country

The General Register of Employed and Unemployed (Caged) of May this year showed growth in the number of formal jobs in Brazil. The balance for the month was 277,018 jobs, the result of 1,960,960 admissions and 1,683,942 dismissals.

The improvement in the level of employment was registered in the five major groups of economic activities:

• Services (+120,294 service stations), distributed mainly in information, communication and financial, real estate, professional and administrative activities;
• Commerce (+47,557 service stations);
• Industry (+46,975 jobs);
• Construction (+35,445 posts);
• Agriculture, livestock, forestry, fishing and aquaculture (+26,747 posts).

The total number of active CLT contracts was approximately 41.7 million in May, which represents a positive change of 0.67% in relation to the previous month. In 2022, there were more than 9.6 million admissions and around 8.6 million dismissals.

In addition to the formal labor market, Brazil has 11.9 million unemployed people, according to the latest Continuous National Household Sample Survey (PNAD Continuous), by IBGE, for the quarter ended in May. The unemployment rate is 9.8%, the lowest for the period since 2015.