Activities were responsible for 67% of net jobs registered in the State
Considering all sectors, MSEs created 91.5% of formal jobs in the State | Credit: Alessandro Carvalho
Data from the General Register of Employed and Unemployed Persons (Caged) show that the State is the second in the country with the largest stock of jobs (4.6 million). More than 3 million of these jobs are in the tertiary sector. Micro and small companies (MSEs) in commerce and services were responsible for 67% of the net jobs created in the State in 2023. This is what the report from the Center for Economic Studies of the Federation of Commerce, Goods and Services of the State of Minas Gerais points out. (Fecomércio MG).
In total, MSEs from all sectors were responsible for 91.5% of the net jobs created in the State last year. The general balance of jobs in Minas Gerais registered 140,836 new professionals in the formal market. Commerce and services accounted for almost 80% of these jobs, with 110,990 new professionals, according to the entity’s survey.
For the economist at Fecomércio MG, Gilson Machado, the performance of MSEs in the tertiary sector in terms of employability is due to the improvement in the Brazilian economy as a whole. “The improvement in the economic environment encourages the hiring of professionals. The job market is only effective, with the hiring of professionals, if it is to meet demands”, he comments.
Gilson Machado states that macroeconomic indicators were at a positive level in 2023, such as inflation. Another point is the beginning of the reduction in the basic interest rate by the Central Bank (BC), which also strengthened the growth of the job market. “When the interest rate starts to decrease, it leads to an improvement in the environment because it improves in terms of hiring, these are factors that corroborate this”, he adds.
Minas Gerais represents 10.5% of the entire job stock in Brazil (43,928,023) and 20.5% of the stock in the Southeast region (22,493,763).
Stability favors commerce and service companies in Minas Gerais to hire in 2024
The trend for this year is that Minas Gerias will continue to perform well in job creation, but with less intensity than in 2023. Commerce and services MSEs can continue to hire if the current economic scenario continues. “We tend to continue improving, although this growth tends to be less intense. This improvement can be achieved if economic indicators continue as we have”, said Machado.
To this end, the economist observed projections for the Brazilian economy, which aim for controlled inflation and a greater reduction in interest rates, already signaled in the latest BC meetings. Thus, the balance of jobs can improve and increase the population’s general income, which would increase demand, and make the state and national economy enter a “virtuous circle” of employability.
“Employment generates money. Money in the economy tends to continue this process, which is very favorable. If I create jobs, more people have money. If she has money, she goes to the market to demand consumption. If it consumes, it generates demand”, concludes Machado.