Unemployment plagues the economy

Marina Gusmão, White spiral.
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By ALDO PAVIANI*

When observing the horizon, nothing appears that points out plans, programs and measures that make the economy grow again and, with that, generate jobs

I follow the elimination of jobs in economic activities, industries, commerce and social activities for some decades. For all that time, unemployment is assumed to be continuing. There are almost 15 million unemployed in Brazil (or 14,7% of the PEA, in the first quarter of 2021, according to the IBGE) and there are no signs that the country's economy will heat up to overcome or even prevent the continuity of this process. The tragedy is only not greater because what is called “informal”, increases the number of handymen, “do everything” or those who wait on the corner to be called for some paid task. However, with the growth of those classified as such, competition is established between these characters and, therefore, they are led to not having anything to do and to obtain some gain (commonly called “income” – which is from capital and not from work). ).

In the case of Brasilia, the Employment and Unemployment Survey of April 2021 (Codeplan/DF) estimates that there are 322.000 unemployed, out of an EAP of 1.641.000 people, which indicates a percentage of almost 20% of unemployed, a little less than than a year ago, when it was reported that there were 333.000 unemployed. Despite the reduction, it is estimated that the covid-19 pandemic could aggravate the situation, as many companies are closing their doors and, with that, dismissing employees. The next survey may or may not confirm this worrying situation.

I established the “job gaps” suit for those positions eliminated throughout the process.

In the gap there will no longer be any possibility of returning to the status quo ante, and, in short, it is the worst kind of unemployment in an economy. It is identified as a "black hole" that devours activity that could happen. However, I don't see how to turn work gaps into statistics that can help with decision-making on how to reduce them. Thus, the innovative concept remains open for future use.

Folha de São Paulo journalist, Vinicius Torres Freire, writes – in an article dated May 30, regarding “The error of exaggerated Pessimism”, that “Technical adaptation to the covid recession should accelerate the structural crisis at work”. And he continues, criticizing the Bolsonaro government. the minister of

Economy says that it “goes for the attack”, which will download a “little social package of favors for Bolsonarist phalanxes, such as truck drivers”. Continues Torres Freire: “There will be great tax forgiveness for small companies in particular. Guedes articulates pleasures to the industry. There will be favors until privatization, at Eletrobras, for example. There is a well-oiled scheme to acquire support from parliamentarians. All of this, in my view, has strong links with all the strategies aimed at the 2022 election. All the cards are played and the support of the so-called “Centrão” will be fundamental to go ahead with this desperate way of staying in power, including keeping the president of Arthur Lira (PP/Alagoas) as an ally, under generous funds feeding the parliamentary amendments – this year totaling more than R$ 48 billion – a record in the political history of the country.

Meanwhile, there is no discernible trace of attitudes that lead to the lowering of measures that lessen the plight of the unemployed. There is no incentive to equally mitigate the effects of the pandemic on struggling small and medium-sized businesses. Many have already closed their doors, driven into bankruptcy because they did not have reserve capital to support months in which sales were no longer effective, as consumption was greatly reduced, due to the uncertainties of families of “what will tomorrow be like”, how the media considers the difficulties of Brazilians in general. Due to lack of consumption to provide revenue, companies lay off workers, which raises unemployment. Thus, in the Economics Section, the Mail Braziliense, edition of May 28, 2021, prints the headline “Unemployment grows and breaks new record”, that is, it reaches almost 15 million people, as mentioned.

When observing the horizon, nothing appears that points to plans, programs and measures that make the economy grow again and, with that, generate jobs and income for companies. Therefore, in this context, the question is what are the desirable public policies to stop unemployment and make necessary and desirable public policies feasible?

* Aldo Paviani, geographer, is Professor Emeritus at the University of Brasília (UnB).

 

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