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EMPLOYMENT
Brazil creates 2.2 million formal jobs over 15 months
In the first quarter of 2024, nearly 720,000 new formal job openings have been created in the country. Photo: Marcelo Camargo / Agência Brasil
Against a backdrop of favorable economic conditions—marked by controlled interest rates and inflation, federal investments in infrastructure projects, a burgeoning automotive sector, and an expanding tourism industry—Brazil experienced a notable uptick in formal job creation in March 2024, reaching a record high in its formal employment levels.
"We are pleased with the panorama we are presenting, gathered over these three months of 2024, the 15 months of government, and the outlook for the future. We have a window of opportunity in the country's reindustrialization process, with record investment announcements as a result of policy measures, whether economic, fiscal, tax-related or in international relations, to open up new markets for the country"
Luiz Marinho, Minister of Work and Employment
The third month of 2024 witnessed the creation of 244,315 formal job positions. Consequently, over a span of 15 months, from January 2023 to March 2024, nearly 2.2 million formal jobs were created in Brazil, with 1.64 million of them added over the past 12 months alone. Additionally, the country reached a milestone of 46 million people employed under formal contracts, marking a historical record. These insights were published in the Federal Government’s New General Register of Employed and Unemployed Persons System (Novo Caged) on Tuesday, April 30th, by the Ministry of Labor and Employment (MTE).
» Caged data by state in March 2024 (available in Portuguese)
"We are pleased with the panorama we are presenting, gathered over these three months of 2024, the 15 months of government, and the outlook for the future. We have a window of opportunity in the country's reindustrialization process, with record investment announcements resulting from policy measures, whether economic, fiscal, tax-related or in international relations, to open up new markets for the country," stated Minister of Labor and Employment Luiz Marinho. "We have implemented coordinated initiatives that have been generating opportunities, in addition to the increase of the minimum wage, and the exemption of Income Tax for people who earn less than twice the minimum wage. All of this leads to growth," he concluded.
HISTORICAL TREND - March 2023 data stands as the second-best job market performance in the historical records of Caged and Novo Caged for this month since 2002. It is surpassed only by March 2010, which saw the creation of 266,000 vacancies.
The March figures, with over 244,000 formal jobs registered, show an increase of 49,100 jobs compared to March 2023, when the balance showed a gain of 195,100 positions. Over the initial three months of 2024, Brazil accumulated 719,033 new formal jobs, marking a 34% increase, compared to the same period in 2023, which totalled 536,000 new positions in the first quarter.
RECORD HIGH JOB MARKET - In March, Brazil reached a record-high stock of formal employment, totaling 46.23 million people. This figure represents the highest in the nation's history, surpassing the March 2023 stock of 44.58 million workers.
SECTOR BREAKDOWN - Four out of the five major economic sectors reported positive growth this March. Leading the way was the services sector, creating 148,722 positions, followed by commerce (37,493), industry (35,886), and construction (28,666). The agricultural sector was the lone exception, experiencing a decline of 6,457 jobs.
REGIONAL BREAKDOWN – Across the five national regions, a positive employment trend was observed. The Southeast region notably led with the creation of 148,304 new formal posts. It was followed by the South, with 42,240, the Central-West with 28,047, the Northeast with 16,037, and the North with 9,670 new formal jobs added.
QUARTERLY HIGHLIGHTS - From January to March 2024, all five major economic sectors showed positive growth. The largest surge occurred in the Services sector, adding 419,286 formal positions, comprising 58.3% of the total balance. Particularly noteworthy were the segments encompassing public administration, defense, social security, education, health and social services, contributing 179,470 vacancies. Additionally, the information, communications, financial, real estate, professional and administrative sectors collectively generated 143,050 new positions.
The industrial sector surged ahead, boasting a net gain of 155,461 jobs, notably fueled by motor vehicle manufacturing (13,605) and food products (13,540). Construction, meanwhile, saw a robust uptick, generating 109,911 positions, with notable spikes in building construction (45,630) and infrastructure projects (27,286). Agriculture also posted a positive balance for the quarter, adding 19,278 jobs, with standout performances in apple cultivation (6,122) and soybean farming (5,181). As for the retail sector, March marked a notable turnaround, posting a positive result for the first time this year, with an accumulation of 15,091 positions.
STATES - Out of the 27 states, 25 showed a positive balance in job creation in March. Five states stood out for opening more than 15,000 new positions. Topping the list is São Paulo, boasting 76,941 new formally employed individuals for the month. Following closely behind are Minas Gerais (40,796), Rio de Janeiro (24,466), Paraná (17,858), and Goiás (15,742). Only Alagoas (-9,589) and Sergipe (-1,875) closed March with a negative balance. When considering the cumulative data for the first quarter, São Paulo leads the pack, with a surplus of 213,503 jobs. Minas Gerais takes second place, offering 88,359 vacancies, while Paraná comes third, with the creation of 69,618 positions in January, February, and March of 2024.
POPULATION GROUPS - In March, the employment balance remained positive for both women (124,483) and men (119,832). Regarding the population with disabilities, there was a positive balance, with the creation of 558 job positions. In terms of ethnicity, the balance was positive for people of mixed race (220,547), white individuals (138,032), and black individuals (44,491), while it turned negative for Asians (-2,793) and Indigenous peoples (-1,946).