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Employment

Open data on employment and income in Brazil

September 4, 2015

Open data on employment and income in Brazil

In times of economic slowdown, one of society's biggest concerns is the eventual impact of this reduction on people's employment and income levels. The measurement of this impact can be assessed by analyzing public data such as the General Register of Employed and Unemployed Workers (CAGED) from the Ministry of Labor.

CAGED data, updated monthly, represents an important source for understanding the past and perceiving trends in the labor market, as it reflects the result of hiring and dismissal movements formally registered by employers nationwide. A positive balance in job creation reflects an expansion of the economy, while a negative balance is the result of a recession, although the macroeconomic indicators that reflect the trend in a country's wealth generation are usually linked to Gross Domestic Product (GDP) measures.

One of the most important aspects of CAGED data is its level of granularity. Unlike several official data sources that publish data at higher levels of aggregation (e.g., state, education level, company economic activity, etc.), the CAGED database contains a line for each entry or exit movement of an individual in the formal labor market. This makes it possible to produce customized analyses and visualizations to answer questions of specific interest to the public interested in this type of information.

In this article, and in subsequent ones we will publish in this space about employment analysis in Brazil based on CAGED data, we seek to describe facts and gain insights based on data visualizations previously prepared for this purpose. At this moment, we aim to evaluate how employment variations occur in different regions of Brazil and for different economic sectors.

By observing employment behavior on the map above, we can easily see that almost all states in Brazil had a negative balance in job creation. The employment balance calculated for each state considers hiring and dismissal movements for all economic sectors in July/2015. However, when we analyze this movement for specific economic sectors, we notice that this picture is different, essentially because the influence of public policies (local and national) on the macroeconomic scenario and the characteristics of companies in a given region affect economic sectors differently, as indicated by the map below.

This second map indicates that a greater number of states showed a positive variation (more hires than dismissals) in the formal labor market for companies operating in agribusiness. In the Southeast region, for example, only the state of Espírito Santo recorded job losses in this sector.

CAGED data also clearly shows the performance of municipalities in each federative unit in generating employment and income for workers. In the state of Ceará, for example, 78 municipalities (or 42% of the total) had a positive balance, although the state as a whole lost 3,411 jobs in July/2015. The municipalities of São Gonçalo do Amarante, Icapuí, and Aracati had the best performance, in absolute numbers, in job creation. Fortaleza, Maracanaú, and Sobral were the municipalities that registered the largest retraction in the labor market.

Still considering July/2015 data, the sector with the most positive result in job creation was civil construction, followed by agribusiness and the non-metallic mineral products industry. The sector with the worst result in the state was commerce and real estate administration, followed by the textile industry and accommodation and food services.

Other variables that are also part of the profile of companies and their employees influence the intensity and direction of labor market variations differently. The analysis of these variables, based on official CAGED data, will be the subject of future articles to be published here.

The results of official employment data analyses can be very useful for decision-making in various corporate scenarios and also for defining public policies that stimulate growth and increase income and jobs in Brazil. The creative and effective use of the knowledge that can be formed from this data is another important topic to be discussed and explored in our articles.

Source: http://blog.opovo.com.br/bigdata/2015/09/04/dados-emprego-brasil/