We’re covering today the Economy Ministry’s new attempt to save jobs. The standoff between Jair Bolsonaro and state governors. And the worrisome trend of Covid-19 in Brazil.
Fewer rights, more jobs? Economy Minister believes so
Expecting a substantial rise in unemployment rates in July and August, the Economy Ministry is looking for ways to encourage companies to hire — or, at least, not fire — workers. So far, the ministry’s playbook has been an utter failure. The program allowing companies to cut wages and working hours — with the government compensating employees — has used up only BRL 1.6 billion from its intended BRL 40 billion budget.
- One solution thought up by Economy Minister Paulo Guedes’ team is recycling an old program initially intended to reduce youth unemployment: the so-called Green and Yellow Work Contract.
Why it matters. The pandemic has begun eroding Jair Bolsonaro’s approval ratings among the middle and upper classes. If the predicted job apocalypse does materialize, it could spark social unrest and end his ability to govern.
What is the “new” program? The Green and Yellow Work Contract would have allowed companies to pay fewer benefits and social contributions when hiring youngsters between 18 and 29 years old...