With a review of data from Caged, the generation of formal vacancies falls by half in 2020

Reason for commemoration by Economy Minister Paulo Guedes, the generation of formal jobs in 2020 fell by 46.8% after updating outdated data.

The comparison is possible through the General Register of Employed and Unemployed Persons (Caged) document presented in January of this year, with the accumulated data for 2020, and the Caged panel numbers updated with new information received.

In January, when it was still released by the Ministry of Economy, Caged registered the creation of 142,690 formal jobs in the year. Now, the panel shows the balance of 75,883 new jobs in the year 2020.

The difference is caused by 337,703 new records of layoffs and, on the other hand, 270,896 new hires reported. The biggest difference can be seen in the month of December, which previously registered only 67,906 jobs lost and now has 112,039 vacancies closed.

Although the year 2020 registered the biggest drop in economic activity since 1990, the strong generation of employment in the year was a reason for celebration by the economic team more than once. This is because, according to Minister Guedes, this was the big difference between the 2020 recession and the 2015 and 2016 recessions.

“The big news for us is that in a terrible year, in which GDP fell 4.5%, we created 142,000 new jobs,” said the economy minister when releasing the data in January of this year.

For 2021, the new Minister of Labor and Welfare, Onyx Lorenzoni, has already stated that he expects the generation of 3 million new jobs.

The forecast, however, counted on the implementation of new programs to stimulate employment that were not approved with the refusal of the Senate to MP 1045.

Until September, Brazil had accumulated 2.5 million new formal jobs.