Slow recovery in employment threatens to drive Brazil into structural unemployment – 01/02/2019 – Market



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The slowness and irregular withdrawal of the contingent of unemployed, as well as a wide range of people in precarious occupations, make badysts fear that for many workers unemployment is no longer a temporary condition or a problem. chronic.

This would have a negative impact on the economy as a whole.

Long-term unemployment, which considers unemployed people more than a year ago, rose to 4.8% at the end of September 2018.

The percentage is around this level since 2017, which is significantly above the 2.4% average recorded between 2012 and 2014.

reacts directly to the slow recovery in the labor market

Data released Thursday by IBGE show that unemployment in Brazil closed 2018 steadily compared to 2017 and reached 12.1 million people

No In total, the country ended the year with 27 million unemployed, those who work fewer hours than they would like or who were available to work, and 4.7 million discouraged people (who stopped looking for work) – both at the highest level. from the Serie. [196590Accordingtobadyststotalofthedeterminationofemploymentandemployinginstructionsintheworkingmarket

In addition to concerns about the well-being of people in such a precarious situation, there is still concern that a part of these unemployment resulting from the recent recessionary cycle also by an increase in structural unemployment, which affects economic growth, said Rafael Bacciotti, an badyst at the IF (Independent Tax Institution) of the Senate.

"For one who stays a long time apart from the job market can become harder to find and what was a temporary situation can become chronic," said Bacciotti, who covered the subject.

Marcelo Gazzano, economist at the consulting firm AC Pastore, says that, according to the literature, an unemployed worker becomes less productive in a perverse circle that is likely to leave him structurally out of the market and reduce the growth potential of the company. 39; company. economy.

"When hiring increases, companies invest in training, for example, which increases overall productivity and improves the labor market," says Gazzano.

But the opposite, he says, is also true: a long period of absence from the market begins to lose skills and the employer's appeal.

In general, the recovery in employment has been much slower than predicted by badysts, reflecting both the intensity of the crisis and the weakness of the economic recovery.

For MCM Consultores, the data for the last quarter of 2018 contain worse signals for the job market and, although it expects a reversal of this result in the coming months, the team Admits that the resumption of employment

According to Mr. Bacciotti of IFC, faced with such a difficult situation, social policies such as education and the qualification of workers should come into play

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