“Let’s reindustrialize Brazil,” says Paulo Guedes with new job creation

The creation of formal jobs at the best level for the months of August since 2010 is a sign that the Brazilian economy is “back on track” after the worst phase of the covid-19 pandemic, Economy Minister Paulo Guedes said today (30).

He took a surprise view of the press conference to explain the results of the August Caged (Cadastro Geral de Empregados e Desempregados), which registered the opening of 249,388 posts with a signed portfolio.

For the minister, the fact that all sectors of the economy generated jobs last month shows that the economic recovery is spreading. “We are announcing the biggest job creation [for August] since August 2010,” he said.

Guedes reaffirmed forecasts presented in recent months by the government that Brazil would do better than other post-Pandemic countries. “We had said that we expected recovery in ‘V’. That is what is happening,” he added. “We said that we were going to surprise the world.

The minister commented on the outcome of the industry that has been driving job creation in the last two months. “We are going to re-industrialise Brazil,” he said. “We are getting back on track.

Reduced day

In Guedes’ assessment, the programme of reducing working hours and wages and suspending employment contracts was instrumental in preserving employment in the country during the pandemic.

According to him, the programme was extended until the end of October because of the good results.

In exchange for the reduction in wages or the suspension of employment contracts, the employee receives the Emergency Benefit (BEm), equivalent to a portion of the unemployment insurance to which he would be entitled if fired. At the end of the agreement, the company is prohibited from dismissing the employee for the same period as he received the benefit.

During the press conference, Bruno Bianco, special secretary for social security and labour at the Ministry of Economic Affairs, confirmed that the government could extend Crypto Revolt for a further two months, until the end of the year. “If there is a demand, there is no reason not to make the extension. It is a well-designed programme, which avoids dismissal, brings income to the worker, guarantees employment,” he said.

Initially, the suspension of contracts programme would last two months, and the suspension of working hours would be worth up to three months. In July, President Jair Bolsonaro published a decree extending the validity of the agreements to 120 days, the maximum period currently in force. At the end of August, the programme was extended again, to 180 days.