According to Banad Continua, the research conducted by Brazilian Institute of Geography and Statistics (IBGE) Which depicts the country’s labor market, the number of employed people grew 8.6% in the quarter ending July 2021 compared to the same period last year, and the total number of employed people reached 89 million.
The problem is that 80% of these workers went to informal services. Slightly more than half (53%) are self-employed as street vendors, street food vendors or small entrepreneurs, all without any formal registration or social security.
This is the case of Lillian Barbosa, who worked for an interior decorating company and lost her job during a pandemic Corona Virus.
“The feeling of losing your job is that the land is opening up, we have a family to support, we have two children,” he lamented.
After experimenting with placement in other areas, Lillian decided to use the experience she had before being fired to start making stucco bricks to decorate the house.
“The ability of humans to reshape and start over whenever needed is the fuel. Seeing that what is done with love and dedication works. But it is very difficult. Doing in a country without support is very difficult,” he said.
You still intend to formally register as a MEI in order to be billed.
says Daniel Duque, an economist and researcher at the Brazilian Institute of Economics at the FGV (Ibre/FGV).
For Duque, one of the main consequences of the increase in the informality is a decrease in the income of workers.
Data from Pnad Continua shows that median income fell 8.8%, compared to the quarter ended July last year. This represents R$242 less at the end of the month for workers. On average, according to the survey, the salary is R$2,508.
In the economist’s assessment, “increased informality means workers with more volatile incomes, who do not quite know what to expect at the end of the month, the next month.”
“There is no kind of guarantee or benefits or security,” he says. “So, we have a very large number of workers experiencing uncertainty in the labor market.”
The economist also points out that informal workers have less access to credit, and financial institutions that can offer checking accounts or credit cards. In the end, they consume less than they earn because they have no security.
“A series of negative effects, leading to less improvement than is necessary, especially with regard to household consumption,” Duque says.
Sardenberg analyzes how informality affects the decline in unemployment
The unemployment rate declined in the quarter ending in July, according to IBGE. The The unemployment rate reached 13.7% in this period, slightly lower than those recorded in the same months last year, at 13.8%.
In total, there are 14.1 million unemployed and 31.7 million untapped in the labor market. In the previous survey, referring to the quarter ending in June, the The unemployment rate was 14.1%, to reach 14.4 million people.
Unemployment rate – July 21 – Photo: G1 الاقتصاد Economy
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