Formal job creation slows down for the second year in a row and totals 1.48 million in 2023

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Caged numbers were released by the Ministry of Labor, this Tuesday (30). Compared to 2022, there was a 26.3% drop in the creation of formal jobs. The Brazilian economy generated 1.48 million formal jobs in 2023, the Ministry of Labor reported this Tuesday (30). In total, according to the federal government, last year the following were recorded: 23.257 million hires; 21.774 million layoffs. According to data from the General Register of Employed and Unemployed Persons (Caged), the numbers represent a drop of 26.3% compared to 2022, when 2.01 million jobs were created. Last year, when the government released the August data, the Minister of Labor, Luiz Marinho, had projected that 2 million jobs would be created in 2023. According to the minister, the goal was not achieved due to a balance lower than expected in the months of September, October and November. “I was very reluctant last year to project what the number of jobs would be and, the way it was going, the interest rates and so on, I was afraid that we wouldn’t reach the level we reached. We ended up talking in the order of 2 million, just to show: ‘let’s sell good news to stimulate the population as a whole, the business community'”, he declared. The minister, however, said he considered the 2023 result to be “reasonable”. According to Marinho, the level of the basic interest rate in the economy, the Selic rate, and debt are factors that affected job creation in the year. The comparison of numbers with years prior to 2020, according to analysts, is no longer appropriate because the government changed the methodology. Official figures show that, in December last year alone, layoffs exceeded hiring in 430,159 formal vacancies. Typically, there are layoffs in the last month of each year due to the seasonality of the trade. The government has also observed layoffs in the public sector, mainly in the areas of education and health, with the termination of temporary contracts. At the end of 2023, according to official data, Brazil had a balance of 43.92 million formal jobs. The result represents an increase compared to December of the previous year (42.44 million). Jobs by sector The 2023 Caged numbers show that formal jobs were created in the five sectors of the economy. Regions of the country The data also reveals that vacancies were opened in all regions of the country last year. Average admission salary The government also reported that the average admission salary was R$2,026.33 in December last year, which represents a reduction compared to November (R$2,032.85). Compared to December 2022, there was also an increase in the average admission salary. That month, the value was R$1,986.15. Caged x Pnad Data from the General Register of Employed and Unemployed Persons consider workers with a formal contract, and does not include informal workers. As a result, the results are not comparable with the unemployment figures released by the Brazilian Institute of Geography and Statistics (IBGE), collected through the National Household Sample Survey Continua (Pnad). The Caged numbers are collected from companies and cover the private sector with a formal contract, while the Pnad data are obtained through household surveys and also cover the informal sector of the economy. According to the Continuous National Household Sample Survey (PNAD), released at the end of last year by the Brazilian Institute of Geography and Statistics (IBGE), the unemployment rate in Brazil was 7.5% in the moving quarter ending in November. It was the lowest since February 2015. Unemployment falls to 7.5% in the quarter ending in November

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