📋 Tender Overview
The recovery of the economy in 2021 has led to a significant reduction in unemployment which reached 11.6 in November 2021 with a decrease of 2.8 compared to November 2020. The current level of the unemployment rate has already is at the pre-crisis level. There was an increase in the workforce and employed personnel both formal and informal which brought an improvement in participation and occupancy rates also bringing them closer to levels similar to the period before the Covid-19 health crisis. These are the highlights of the information note Improvements in the Labor Market in 2021 with a strong reduction in unemployment produced by the Federal Government through the Secretariat of Economic Policy SPE of the Ministry of Economy and released this Monday 3101. .The SPE note highlights that the improvement in the labor market occurred despite the strong increase in the workforce. People who were not looking for a job or who would like to work more sought reinsertion into the labor market during this period and found jobs. When compared to the same period last year more than 6 million Brazilians entered the workforce says the document.The study points out that there was also a significant reduction in the unemployment rate due to the creation of 8.4 million jobs in 12 months which absorbed the growing number of workers who were out of the workforce. The underutilization rate dropped sharply reaching 25 in November 2021 a level close to the period before the new coronavirus crisis. And the rate of discouraged people is returning to the value observed before the health crisis.The note also notes that the pro-market reform agenda and the fiscal consolidation process have allowed the maintenance of sustainable economic growth which will make it possible to increase activity in this and the coming years. As a consequence there is a positive outlook for investment and continuity of employment generation in the coming years which will provide a consequent reduction in unemployment informs the study.Increase in the employed populationThe SPE note notes that the return of the unemployment level to a level lower than that which occurred between September 2016 and June 2019 occurred with a strong increase in the employed population even with the increase in the workforce. Thus the relevant reduction in the population outside the workforce the discouraged and underemployed occurred thanks to the addition of almost 700 thousand jobs per month since the end of last year considering the seasonal adjustment. Occupation grew in both formal and informal jobs as well as the underutilization of the workforce.The significant decline in unemployment is the result of the net creation of jobs in a significant way in an amount greater than the increase in the workforce that has occurred in parallel says the document. There was an expansion in the activity rate PEAPIA and in the occupancy level POPIA. According to the note the most critical moment of the effects of the health crisis on the labor market was recorded in April 2020 when the activity rate reached 56.7 and the occupancy rate reached 48.5. In October 2021 the occupancy rate had practically recovered the pre-crisis level reaching 54.6 an expansion of 6 compared to the worst moment in 2020. The activity rate in turn reached 54 .6 in October with expansion of 5.4 compared to the lowest level in the crisis. With occupation expanding at a faster pace than the expansion of the total workforceThe increase in the occupancy rate is explained by the expansion of the total employed population which grew 3.5 in relation to the previous mobile quarter and more than 9.7 in 12 months according to the PNAD Contnua. As a result there was an increase of more than 8.4 million people employed in this period of one year both in the formal and informal sectors. Using seasonally adjusted data this year nearly 700000 jobs were created per month. With employment growing at a faster pace than the total workforce 6.2 new jobs are added net.sectorsOccupancy grows in all sectors comparing November 2021 with the same month of the previous year. The highlight is the increase in vacancies in accommodation and food 24 domestic services 22 construction 20 other services 13.9 and trade repair of motor vehicles and motorcycles 10.4 which grew above the general average 9.6. The SPE note details that considering the participation in the total of 8.4 million vacancies created in these months the biggest highlights are trade repair of motor vehicles and motorcycles 20.4 of the total construction 14.9 domestic services 12.2 accommodation and food 11.9 and general industry 11.2 which together accounted for 70 of the total employment generated in the period.The document also emphasizes that the improvement in the labor market can also be observed in the increase in employment as explained by the data from the General Register of Employed and Unemployed Caged referring to formal occupation with an expansion in the net creation of jobs. In November 2021 around 324 thousand new net vacancies were created resulting in an accumulated of almost 2.8 million vacancies in 12 months.
