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Covid-19 crisis scraps 860,503 formal jobs in April alone

. May 27, 2020
jobs lost covid-19 crisis Photo: Maridav

Brazilian companies have closed 860,503 formal positions in April alone, the worst performance for the month on record. The figures are a result of a 56.5-percent drop in hires, coupled with a 17-percent spike in layoffs — when compared to 2019 levels. Taking April’s results into account, Brazil has seen a deficit of 763,232 formal jobs in the first four months of 2020. Looking at specific sectors, only agriculture remains with a positive job balance in the year, with 10,032 new positions. Construction, commerce, services, and industry all posted negative numbers. In the commerce sector alone, 342,748 jobs have been lost in 2020. 

The government claims its program to allow businesses to cut workers’ wages and hours has helped preserve around 5 million jobs.

This is the first time the Economy Ministry has published employment figures this year, after claiming companies did not provide enough data in previous months — even if they are legally obligated to do so.

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Natália Scalzaretto

Natália Scalzaretto has worked for companies such as Santander Brasil and Reuters, where she covered news ranging from commodities to technology. Before joining The Brazilian Report, she worked as an editor for Trading News, the information division from the TradersClub investor community.

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