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Employment

Brazil: employment and unemployment grow together, says expert

18/01/2012

This article was translated by an automatic translation system, and was therefore not reviewed by people.




SAO PAULO - In Brazil, employment and unemployment grow together. This result occurs because of the informal workers seeking jobs rather than lose the benefit.

According to Professor at FEA-USP (Faculty of Economics, Administration and Accounting from the University of Sao Paulo), José Pastore, with the current lack of manpower, it was easier to re-employ the worker. Thus, the possibility of losing the benefit is even greater.
"Not to lose the benefit of unemployment insurance, many seek an informal employment," he explains.

According to Pastore, to be eligible for unemployment benefits, the employee must have worked at least six months with unregistered. As for access to money FGTS (Guarantee Fund for Length of Service), the time is greater.
"To be able to withdraw funds deposited in the FGTS, the employee needs to complete one year of service, since dismissed without just cause," he says.

Multiplication of money
According to simulations made by the teacher, made with approximations and without considering the rebate law, assuming workers to earn a R$ 1 000 per month and after one year, is dismissed without just cause, he will have accumulated R$ 1.040 in the account R FGTS.
In addition to the amount, the worker will receive an additional R$ 400 as compensation, or will be R$ 1.440.

After being turned off, the employee will receive, besides the salary of the month, as part of severance pay, an additional R$ 1.000 of 13th and R$ 1.333 salary and holiday allowance, bringing the grand total of R$ 3.773.

Regarding unemployment, the worker will receive four installments of R$ 763,29 to R$ 3.053,16.
"In short, to live in these four months, the employee will have R$ 6.826, which gives an average of R$ 1.706, or 70% more than he earned when he was working," said Pastore.

If the worker finds a job in this period informal, to win back R$ 1000 will be R$ 4 000 during the four months to receive the unemployment insurance. "The total gain in the period will rise to R$ 10.826, which gives an average of R$ 2.706 monthly.
In addition, there is a salary bonus, "he adds.

He said because this is the reason for choosing that workers continue to work in the informal sector to continue to receive unemployment insurance. "This is especially true among low-income employees.
For those who earn R$ 1000 per month, an increase of 70% of income is extremely valuable, "he says.

Increasing expenses
Despite the abundant supply of employment, unemployment insurance claims continue to grow. According to Pastore, payment of unemployment insurance and salary bonus in 2011 consumed about R$ 32 billion, almost 20% above what was spent in 2010. "Part of the bursting of the expenditure was due to an increase in the minimum wage in 2011. And what will happen in 2012? The minimum wage is R$ 622 monthly, an increase of 14% over 2010. Government to prepare.
The cost of unemployment insurance and salary bonus will explode, "he says.

For the teacher, it's time to do a good review of laws that support these maneuvers. "The requirement to accept a job offered by the Ministry of Labor is a good measure, but is still timid.
A deep reform requires a combination of unemployment insurance and FGTS training programs and their own retirement, "he concludes.

 

Source: InfoMoney

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This article was translated by an automatic translation system, and was therefore not reviewed by people.

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