Brazil opens 83,297 formal job openings in January – 09/03/2023 – Market

Brazil opened 83,297 formal job openings in January, according to the Caged (General Register of Employed and Unemployed) released this Thursday (9) by the MTE (Ministry of Labor and Employment).

The result was better than that of December, when 440,669 formal job openings had been closed, according to the updated number, but came below the January 2022 balance, of 167,269 formal job openings (updated number).

According to Caged, the balance of new vacancies in January was the result of 1,874,226 admissions and 1,790,929 dismissals.

January was the first month of the new government of Luiz Inácio Lula da Silva. Despite the positive result in the Caged, it was lower than that registered in the same month last year, which corroborates some assessments that the job market is slowing down.

In the minutes of its last monetary policy meeting, held in early February, the Central Bank had already warned of the weakening of the labor market.

“The labor market, which surprised positively throughout 2022, continues to show signs of deceleration, with a drop in net admissions of the New Caged and relative stability in the unemployment rate, resulting from declines in the employed population and in the workforce”, he pointed out. BC at the time.

In the Lula government, one of the diagnoses is that the Selic (basic interest rate), maintained by the BC at higher levels to hold down inflation, has been harming economic activity, which is reflected in the admissions and dismissals of workers.

Currently at 13.75% per annum, the Selic rate has been above double digits since February 2022.