Brazil adds 33.6 thousand new formal jobs in May

In the wake of the series of measures implemented by the federal government to lift the economy out of the recession, Brazilians are starting to feel the practical results of the recovery in their everyday lives. Data from the General Register of Employed and Unemployed Persons (Caged) has revealed positive formal job growth for the fifth consecutive month in the country.

Formal job creation (i.e. total hirings minus dismissals) stood at 33.6 thousand in May, for a total positive balance of 381.1 thousand formal jobs added so far this year. Also importantly, the labour market saw positive results in four out of Brazil’s five geographic regions, showing widespread improvement. The Northeast led the ranking (+30.8 thousand jobs), followed by the South (+10.7 thousand) and North (+3.9 thousand).

Highlights

Six of the eight main branches of the economy hired more than they laid off in May. The biggest driver of new jobs was agriculture and livestock, which added 29.3 thousand formal positions in the months.

Driven by the increase in household consumption – another strong sign of economic recovery – the services sector also had an expressive result, adding 18 thousand formal positions last month.

Labour modernisation

The Caged has also revealed that the labour modernisation law, whose changes are now in effect, has already started producing effects in the country.

According to the survey, hiring in the intermittent and partial work modalities (both established by the new labour rules) saw 3,200 and 1,900 new positions added, respectively.