Brazilian government actions to stimulate job creation undergo cuts

A survey of the Open Accounts Association points out that 25.2% of resources aimed at stimulating job creation. The largest contingency was in the amount allocated to the integration system of employment, labor, and income, which lost R$ 44.8 million. The project to modernize and expand the service network of the unemployment insurance program, of the Brazilian National Employment System, lost R$ 9.6 million. The resources for public registrations in the area of work and employment were reduced by R$ 4.1 million.

The note on contingency in government actions aimed at job creation was seen as discouraging by many economic analysts. Especially when Brazil is experiencing an increase in the number of people looking for work and the federal government decides to cut R$ 59.2 million on actions to stimulate the opening of new jobs in the market.

Brazil cuts 43,196 jobs at the formal labor market in March

According to information from the Caged (General Register of Employees and Unemployed) disclosed today by the Special Secretariat of Social Security and Labor of the Ministry of Economy, Brazil closed 43,196 job vacancies with a formal contract in March. This is the worst result for the month of March since 2017 when 63,624 jobs were closed. In March 2018, Brazil had created 56,151 jobs with a formal contract. The worst results were registered in the areas of commerce (-28.803), agriculture (-9.545), and construction (-7.781).

Today, after the vote on the Pension Reform in the Constitution and Justice Commission (CCJ) of the Chamber of Deputies, approved yesterday after 62 days of debates, six times more time for the approval of the Pension Reform project presented previously by the government of Michel Temer (which was not approved).

This difference to overcome a stage that virtually all analysts consider very simple indicate that perhaps the government, because of its disorganization in political articulation, will have difficulties approving the Pension Reform.

The union of the negative numbers of Caged and the difficulty of the government to approve the Pension Reform does not create a favorable horizon. Because of this climate of doubt and uncertainty, the financial market in Brazil will continue to fluctuate.