With a loss of 10,984 vacancies in June, formal market continues to react

The formal labor market continues to react to the coronavirus crisis, after recording a significant drop in vacancies in April and a modest recovery in May.
Brazil recorded 906,444 layoffs of formal vacancies in June, according to data from the New General Register of Employees and Unemployed (Caged) released on Tuesday (28) by the Ministry of Economy.
Compared to 895,460 hirings in the same month, the balance was negative in 10,984 jobs.
In May, the balance had been negative at 350,303, the worst result for that month since the beginning of the historical series, which began in 2010.
In the year, the balance of formal employment closed the first half negative at 1,198,363, resulting from 6,718,276 admissions and 7,916,639 layoffs.
The figures show that the deterioration of the formal market has been considerably lower since April, the worst month of the crisis, and when the net loss of the formal market was 918,286 vacancies.
The projection of the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV) for June was a negative balance of 220,000 vacancies.
Secretary Bruno Bianco highlighted, in a press conference after the announcement, the significant growth in admissions, in the order of 24% compared to May. In the same comparison, the shutdowns had a drop of almost 16%:
"The reaction of the labor market shows that a recovery in "V" (faster) is possible, as Minister Guedes has said," Bianco says.
Compared to previous months, the improvement in the formal market is clear, according to Fipecafi economics professor Samuel Durso, but we are still a long way from Caged's positive results: "It's a recovery, but there's still a lot of ground ahead in terms of overall economic improvement," he says.
Durso points out that the government still needs to define more clearly how the level of employment will be maintained after the end of the term of social programs.
The Emergency Program for The Maintenance of Employment and Income, announced at the end of March by the government to assist companies in the costing of payroll, in addition to allowing the reduction of wages and the day, was extended for another two months.
According to the secretary, the number of companies that joined went from 15 million.
When this deadline ends, however, there are no guarantees that the scenario will continue to improve, explains the professor:
"These measures were important to make companies hold off layoffs as much as possible, but if the economic recovery is not as fast as expected, there may be more layoffs after the policy closes," Durso said.