Brazil Sees YTD Job Creation Totalling 1.9M: Anticipates 2M Increase by 2023

Summary

  • As per labor ministry reports, 1.9 million net jobs were created year-to-date, nearing the expected increase to 2 million jobs by the end of 2023.
  • The acting labor minister, Francisco Macena, recognises December as a typical month for job reduction due to the termination of temporary holiday staff.
  • In November, the government reported net gains in only two out of five surveyed activity groups – services and retail sectors. Decreases were observed in the industry, construction, and farming sectors.
  • The average monthly wage for new jobs fell from 2,031 reais to 2,022 reais ($416.14).
  • The overall number of workers registered formally in Brazil has risen to 44.4 million, excluding around 40 million unregistered workers lacking official employment contracts.

YTD Job Creation in Brazil

From the start of the year, a total of 1.9 million net jobs have been created, as per the data from the labor ministry. This is close to the previously forecasted rise to 2 million jobs by the year-end of 2023.

Labor Minister’s Acknowledgement

In recent press briefings, the acting labor minister, Francisco Macena, recognized December as a common month for a net decrease in jobs. This is attributed to the release of temporary staff hired during the holiday season. He further stated that the ministry would continue to track the final job data for the year.

Activity Group Survey Results

Differing trends were seen across business groups in November with net job growth reported in merely two out of five activity sectors evaluated by the government. Services and retail made gains while a downtrend was witnessed in the industry, construction, and farming sectors.

New Job Wages

The average monthly compensation for newly created positions dropped from 2,031 reais in October to 2,022 reais ($416.14).

Brazil’s Formal Employment Rate

Separately, the total number of workers formally registered in Brazil has now reached 44.4 million. This number does not include the approximately 40 million unregistered workers who are not engaged under official employment contracts.

The current exchange rate is 1 US dollar to 4.8590 reais.

In the context of forex trading, these job market fluctuations and wage changes in Brazil could impact currency value, thereby affecting the USD/BRL exchange rate. Market participants should be aware of these developments.

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