January 2022 Caged data shows a drop in the economy and the labor market loses steam, points out economist

Economist also points to risk of recession (Reproduction)

March 11, 2022

08:03

Malu Dacio – Cenarium Magazine

MANAUS – One of the biggest parameters of the economic situation in Brazil, the General Cadastre for Employed and Unemployed (Caged) indicated that the employment celetista in Brazil – ie, who has employment relationship in the Consolidation of Labor Laws (CLT) – showed growth in January 2022.

But the data show that the labor market is losing steam and responds negatively to the performance of the economy, indicating that in 2022 the economy will not be able to generate enough jobs.

The balance recorded a balance of 155,178 thousand jobs. This result was the result of 1,777,646 million new jobs hired and 1,622,468 million laid off.

The Caged is the monthly report that informs about the hiring and dismissal of employees during the month. The document contains information about the employees. This information is contractual information, such as workload, position, and salary.

To CENARIUM MAGAZINE Inaldo Seixas, coordinator of the Brazilian Association of Economists for Democracy (Abed-AM) and counselor of the Regional Council of Economics (Corecon), explains that this January result indicates that the economy is going to a slowdown.

“Because you can see that the balance is lower than the one closed in December. I believe that it drops to 1.2 million, the balance in January of the accumulated 12 months. So, it already comes like this, a cooling down of the job market, in hiring”, he said.

And, in the case of Amazonas, it is for the specialist, very small. “The job creation in the last twelve months is a balance of 35 thousand workers. The Caged is showing a very small performance. If you see, only in January there is a situation, practically, of stability of admissions and admissions almost equal”, he says.

Economist says Caged data may indicate bad economy in 2022 (Reproduction)

He explains that the numbers indicate that in 2022 there may be little growth or even the possibility of going into recession, with high inflation, which would be stagflation.

For the economist, if compared to the month of December, in January there is a positive balance, but it did not compensate if compared to the efficiency of formal jobs.

“Now, analyzing this, from the perspective of the economy, it grew a lot, but it didn’t generate enough formal jobs. Maybe the economy has grown a lot, but at the cost of relying a lot on informal workers, non-formalized workers, workers with precarious work and workers who had to go freelance,” he explains.

Released by the Ministry of Labor, the data recorded a positive balance, in the level of employment, in 4 of the Great Groups of Economic Activities. They are: Services with +102,026 jobs, distributed mainly in Information, communication and financial, real estate, professional and administrative activities (+58,773 jobs); General Industry with +51,419 jobs, concentrated in the Manufacturing Industry (+48,802 jobs), Construction (+36,809 jobs), Agriculture, livestock, forestry production, fishing and aquaculture (+25,014 jobs); and Trade (-60,088 jobs).

In the regions

The number comes after the negative balance in December 2021, when it reached -281,792. The North Region had 80,217 new admissions, 77,782 layoffs, and 2,435 new jobs; 19 of the 27 states had a positive balance. In the North Region, only Pará had a negative balance of -796 with -0.10% relative variation.

In Amazonas, 17,858 new jobs were hired and 17,233 were fired, with a balance of 625. The balance shows that the Southeast and South had more jobs when the Northeast suffered from unemployment. Among the states that generated the most jobs, the highlight is São Paulo, with 48,355 new positions. Santa Catarina, with 23,358 and Paraná, with 18,351.

The States with the most negative balances were: Sergipe with -1,253 jobs; Ceará with -1,508 jobs and Rio Grande do Norte with -2,430 jobs.

For the entire country, the average admission salary in January was R$ 1,920.59. Compared to the previous month, there was a real increase of R$ 115.24 in the average entry level wage, a variation of around 6.38%.

About

The General Registry of Employed and Unemployed (Caged) was created by Law 4,923, of December 23, 1965, as an instrument to monitor and supervise the admission and dismissal process of workers governed by the Consolidation of Labor Laws (CLT). Its initial purpose was to assist unemployed workers and support measures against unemployment.