Daily News

View All News

Brazil – Economic crisis boosts number of temporary jobseekers

06 October 2015

The unemployment rate in Brazil hit its highest level for more than three years during the second quarter of 2015. The main driver for the 8.3% unemployment rate has been the reluctance of companies to hire permanent workers.

Vander Morales, President of Fenarserhtt (Trade Union of HR, Temporary Work, and Outsourcing Companies) and Sindeprestem (Trade Union of Outsourced and Temporary Employment Services for São Paolo), expects that most companies will look to reduce their permanent staff numbers.

Demand for temporary workers will increase, to replace the permanent workers, so that companies will be able to meet demand in the run up to Christmas and New Year. Open ended contracts, he added, will be less common because of the economic crisis.

The rise in those who are unemployed and seeking work will mean greater competition for both permanent and temporary jobs. The mismatch in supply and demand could results in greater labour informality and create more problems for Brazil’s already strained labour market. 

Martin Padulla, Managing Director of staffingamericalatina, commented: “Considering the context created by the Brazilian crisis, it is vital for companies to turn to legal alternatives to satisfy their extraordinary needs of human capital.”

“Despite the rise in unemployment, it is very important to avoid a rise of labour informality and to ensure that companies cover their extraordinary needs through legal staffing and outsourcing companies that generate decent work in Brazil.”

“It is important to closely follow the number of temporary workers, as it is a useful indicator to predict GDP,” Mr Padulla concluded.